IMF roped in for planned tax reforms

It is understood the IMF consultant, engaged last week, has submitted a report on a draft prepared by the Ministry and containing the proposed amendments to the Income Tax Act.

The amendments involve plans to discard the current two-tier system and replace it with a single corporate tax rate of 25 percent. They also include reducing the withholding tax on dividends to 7.5 percent, from 15 percent. Disagreement, however, is around what to do with the credits companies receive against the Additional Company Tax (ACT) of 10 percent they have been paying.