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The Cabinet of Ministers has cleared the draft Surcharge Tax Bill introduced by Finance Minister Basil Rajapakse. 

The bill plans on enforcing a 25% one-off surcharge on individuals/ companies which recorded an income over LKR 2 billion in the 2020/21 financial year. The bill was part of the finance minister’s revenue proposals in the 2022 budget, which seeks to bring LKR 100 billion to the state. 

According to the Government Information Department, the Attorney- General has given clearance to the legal draftsman regarding the bill. 

According to the Finance Minister, the bill will only apply to 62 large corporations in Sri Lanka. However, business entities warn that such retrospective tax actions will dampen investor confidence in the government.