rnMinister Bandula Goonerwardene at the Cabinet press briefing today said the government hoped to utilize the funds to boost local investments.
The proposed Inland Revenue Special Provision Act, which will declare a 18 month clemency period to invest previously undeclared funds through capital investments in formal businesses.
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Prospective investors will not face penalties or taxes during the clemency period on the undeclared funds that are invested.rn
Tax liability is imposed only on the earnings from the investments, once realized in due course. rn
This move is expected to increase employment levels in the economy, through new investments in construction and infra structure development activities.rn
Expanding the formal economy through the funds sourced from the ldblquote black economy dblquote was among the key strategies to turnaround the economy, announced by the center-right UNF during the 2001 election campaign. rn
However, the proposals attracted fire from the left-wing opposition,