Tax relief for film industry

In an effort to promote the local film industry, Prime Minister Mahinda Rajapaksa has decided to grant back the tax concession which was initially granted by him during his tenure as President and which was annulled by the previous Good Governance Government, following discussions with film industry professionals.

Film industry professionals had met with the Prime Minister on January 8 at Temple Trees where they had conveyed to him their grievances and the impact of the tax on film production as well as equipment.

In response to this, the Secretary to the Ministry of Finance and Ministry of Religious and Cultural Affairs after discussions with the Premier decided to revert to the tax concessions which were offered by the Prime Minister during the time he served as President. This includes imports of equipment used for film production and screening. When the Premier was the then President, VAT exemptions were granted on production, distribution and exhibition of any film and supply of laboratory facilities for the production of any film.

Exemptions were also granted on importation of any film locally produced, VAT was reduced to 5 percent and import duty was exempted on importation of specified items used in the film industry.

(Source: Daily News)