FINANCE ACT – 2012

Arrangement of Sections

1. Short title.

PART I

AMENDMENT OF PART IIA OF THE FINANCE ACT, NO. 25 OF 2003

2. Amendment of section 13A of Part IIA of Finance Act, No. 25 of 2003.

3. Indemnity.

PART II

REPEAL OF PART IIIA OF THE FINANCE
ACT, NO. 11 OF 2004

4. Repeal of Part IIIA of Finance Act No. 11 of 2004.

5. Savings.

PART III

AMENDMENT OF PART II OF THE FINANCE
ACT, NO. 16 OF 1995

6. Replacement of section 3 of Finance Act, No.16 of 1995.

7.­ Replacement of section 4 of the principal enactment.

8. Replacement of section 5 of the principal enactment.

9. Insertion of new section 5A in the principal enactment.

10. Amendment of section 10 of the principal enactment.

11. Amendment of the First Schedule to the principal enactment.

12. Amendment of the Second Schedule to the principal enactment.

14. Retrospective effect.

15. Indemnity.

PART IV

EXEMPTION FROM APPLICATION OF THE PROVISIONS OF CUSTOMS ORDINANCE, EXCHANGE CONTROL ACT AND THE IMPORTS AND EXPORTS (CONTROL) ACT, NO. 1 OF 1969

16. Granting exemption to certain enterprises from application of the provisions of Customs Ordinance.

17. Granting exemption to certain enterprises from application of the provisions of Exchange Control Act.

18 Granting exemption to certain enterprises from application of the provisions of Imports and Exports (Control) Act.

18A. Granting exemption to certain enterprises from the application of the provisions of certain Acts.

18B. Extending the application of the provisions of the Inland Revenue Act, No. 10 of 2006 to certain enterprises.

18C. Extending the application of provisions of the Strategic Development Projects Act, No. 14 of 2008 to certain enterprises.

19. Enterprises are required to report periodically.

19A. Regulations.

19B. Interpretation.

20. Sinhala text to prevail in case of inconsistency.

SECHEDULE

12 of 2012,

12 of 2013.

AN ACT to amend the Finance Act, No. 25 of 2003, the Finance Act, No. 11 of 2004 and the Finance Act, No. 16 of 1995; to provide for the exemption of certain enterprises engaged in certain activities from the application of the provisions of the Customs Ordinance, the Exchange Control Act and the Imports and Exports (Control) Act, No. 1 of 1969; and to provide for matters connected therewith and incidental thereto.

[Date of Commencement: 30th March, 2012]

1. Short title.

This Act may be cited as the Finance Act.

PART I

AMENDMENT OF PART IIA OF THE FINANCE ACT, NO. 25 OF 2003

2. Amendment of section 13A of Part IIA of Finance Act, No. 25 of 2003.

[Part IIA (The Levy on Rooms of Five Star Hotels) of the Finance Act No. 25 of 2003 is hereby amended.]

3. Indemnity.

Where the Levy on Rooms of Five Star Hotels has been charged by the Chairman of Sri Lanka Tourism Development Authority or any other person authorized in that behalf by the guidelines issued under subsection (3) of section 13A of the principal enactment in respect of any room provided to any member of an Airline Crew under concessionary rates, during the period commencing from April 1, 2011 and upto the date of the coming into operation of this Act, such person shall be deemed to have acted with due authority and such collection shall be deemed for all purposes to have been, and to be validly made and such Chairman or person is hereby indemnified against all actions, civil or criminal in respect of such collection.

PART II

REPEAL OF PART IIIA OF THE FINANCE
ACT, NO. 11 OF 2004

4. Repeal of Part IIIA of Finance Act No. 11 of 2004.

[Part IIIA (Imposition of Withholding Tax on the Registration of Motor Vehicles) of the Finance Act, No. 11 of 2004 is hereby repealed, with effect from November 24, 2011.]

5. Savings.

(1) The provisions of the principal enactment shall notwithstanding the repeal of Part IIIA thereof , in respect of the matters set out in subsection (2) , be in operation for such period as may be required for the recovery of any sum due under repealed Part IIIA.

(2) Notwithstanding the repeal of Part IIIA of the principal enactment with effect from November 24, 2011, the Commissioner of Motor Traffic is hereby empowered to recover all sums due as Withholding Tax on the Registration of Motor Vehicles on the day immediately preceding November 24, 2011, and transmit all sums so recovered by him as the Withholding Tax to the Commissioner-General in terms of the provisions of section 28c of the repealed Part IIIA.

PART III

AMENDMENT OF PART II OF THE FINANCE
ACT, NO. 16 OF 1995

6. Replacement of section 3 of Finance Act, No.16 of 1995.

[Section 3 of the Finance Act, No.16 of 1995 is hereby repealed.]

7.­ Replacement of section 4 of the principal enactment.

[Section 4 is hereby substituted.]

8. Replacement of section 5 of the principal enactment.

[Section 5 is hereby substituted.]

9. Insertion of new section 5A in the principal enactment.

[Section 5A is hereby inserted immediately after section 5.]

10. Amendment of section 10 of the principal enactment.

11. Amendment of the First Schedule to the principal enactment.

[(1) By the repeal of the Heading to Part II.]

[(2) By the repeal of the example to Part II.]

[(3) By the addition of Part III immediately after Part II.]

12. Amendment of the Second Schedule to the principal enactment.

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