8. The following new Part is hereby inserted immediately after section 28 of the Finance Act, No. 11 of 2004 and shall have effect as Part IIIA (sections 28A, 28B, 28C, and 28D) of that enactment:
| 28A. (1) There shall be levied in accordance with the rates as are specified in section 28B, with effect from April 1, 2005, a withholding tax, on every applicant seeking to register a motor vehicle, in respect of every motor vehicle registered by the Commissioner of Motor Traffic in accordance with the provisions of the Motor Traffic Act, (Chapter 203) other than on three-wheelers, lorries and buses used solely for the purpose of providing public transport. For the purpose of this section "motor vehicle" shall have the same meaning as in the Motor Traffic Act (Chapter 203). |
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| (2) The Commissioner of Motor Traffic shall not issue in respect of any motor vehicle a Certificate of Registration unless the withholding tax payable in terms of this section has been paid by the applicant. Any tax paid under this section shall be duly acknowledged by the issue of a Certificate to the applicant. |
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| 28B. The collection of the withholding tax imposed under section 28A shall be at the following rates :
| | (a) for a first registration of a motor vehicle, a sum of rupees five thousand ; and | | |
| | (b) for every other registration a sum of rupees one thousand. | | |
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| 28c. The Commissioner of Motor Traffic shall remit the amount collected by him as withholding tax in terms of this Part to the Commissioner-General on or before the fifteenth day of the month following the month in which the tax was collected along with a return of the moneys collected by him. |
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| 28D. Any person who has paid the withholding tax in terms of this part of the Act, shall be entitled to deduct such withholding tax from the income tax payable by such person under the Inland Revenue Act". |
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Sri Lanka Consolidated Acts