Economic Service Charge ( ESC)

Economic Service Charge ( ESC) [Amendments to ESC Act No 13 of 2006]

 

(i) The present exclusion of profit making businesses will be removed.

 

(ii) The present maximum liability of Rs 120 million per year will be removed.

 

(iii) The rate is increased from 0.25% to 0.5%.

 

(iv) The period for carried forward of ESC to be set off against income tax payable for any period commencing from April 1, 2016, is reduced from 5 years to 3 years.

 

[ Relevant provisions of the ESC Act will amended]