Sri Lanka to Introduce Tax Exemption and Reduced Rate for Agricultural Industry

Sri Lanka's Ministry of Finance has published a release announcing proposed measures to promote agricultural production for exports and consumption purposes. The measures include:

• The introduction of a five-year income tax exemption for agricultural income derived by small-scale businesses in the cultivation of any agricultural produce such as tea, spices, coconut, rubber, paddy, fruits, vegetables, etc.; and
• A reduction in the income tax rate from 28% to 14% on the profit of processing ind…