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| Sunday, 17 July 2005 |
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ICTAD levy will develop construction industry by Chanuka Mannapperuma The Institute of Construction Training and Development (ICTAD) is empowered to collect the Construction Industry Guarantee Fund (CIGF) levy on behalf of the Sri Lankan government, which was approved by Parliament under the Finance Act No. 5 of 2005. ICTAD, Chairman, Prof. Lakshman Alwis told a press briefing last week. He said this is a landmark for the Construction Industry where the contractor contributes to the development of the industry. When compared with other developed countries the construction industry in Sri Lanka is very poor," he said. Explaining the levy, Tax Consultant, Ministry of Finance, I.K. Balasooriya said the Act provides to collect the levy on every construction contract enforced in Sri Lanka by every construction contractor on contracts entered into on or after January 1, 2005. The government proposed to charge a CIGF levy as a construction industry revival initiative in the 2004 budget proposal, she said. She said it is proposed to increase the capital of the CIGF to Rs.500 million. A cess of 0.25 percent from small contractors, 0.5 percent from medium contractors and one percent from large contractors on their contract turn- over would be imposed and earmarked for the fund. The government will also contribute Rs. 250 million. The construction contracts valued at less than Rs. 15 million are not subject to the levy while contracts valued at Rs. 150 million or above will be subject to one per cent levy, she said. |
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