Under the new tax scheme the net income of artistes earned by productions or creative work will be free of taxes up to Rs. 500,000 per annum, the Ministry of Finance announced yesterday.
The Ministry said when the new tax regulations come into effect, artistes involved in the fields of Cinema, Stage Drama, Music and other fields would be able to enjoy the above benefit.
Under the new scheme the ministry said that the income tax payable by artistes will be similar to that of other citizens in the country.
“Under the proposed law, a proprietor or individual will not be taxed upto Rs.500, 000 of the net annual income. For each succeeding Rs. 600,000 tax will apply at rates starting at 4 percent and increasing gradually to 8 percent by a margin of 4 percent,” ministry sources explained.
The ministry in a statement said that the Inland Revenue Act which existed had a very complicated system and tax holidays and concessions were given in a haphazard manner and due to this an income disparity was created.
The new regulations will be a more simple and transparent system which addresses the needs of all. The statement further said that new taxation system will not be based on the social status or occupation of persons, but on the income and profit they gain.
It also observes that the new Inland Revenue Act is in adherence with the good governance policies adopted by the present government. (CDN)