Sri Lanka to reimpose 100pc property tax on foreigners
AFP, Colombo
Sri Lanka's parliament approved Tuesday a law restoring a 100 xercent tax on foreigners buying land in the palm-frinoed island as part of a drive by the Marxist-backed government to stop a selloff of beach property. Lands Minister Anura Dissanayake who is a member of the Marxist JVP, or People's Liberation Front, proposed the land tax in June after accusing the previous right-wing government of allowing foreigners to buy prime real estate. The new law approved by parliament would force individual buyers purchasing propmrty to pay a 100 percent tax on the purchase price that would in effect double the cost. But the legislation does leave a loophole. No tax would apply to purchasmrs who form a company under Board of Investment (BOI) regulations and buy property.
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