Finance Bill clears key tax reforms as telecom tower incentives win approval

THE Committee on Public Finance (CoPF) has approved a series of tax and fiscal policy reforms, including a five-year tax exemption for newly constructed telecommunications towers, while rejecting a proposal that would have allowed telecom operators to claim tax relief on unpaid customer bills.

- 

The Finance (Amendment) Bill, which seeks to amend the Finance Act, No. 35 of 2018, was approved when the Committee met in Parliament under the chairmanship of MP Dr. Harsha de Silva.

The legislation forms part of measures announced in the 2026 Budget to accelerate digital infrastructure development and expand countrywide connectivity.

Under the proposed amendment, new telecommunications towers that become operational on or after 1 January 2026 will qualify for a five-year tax exemption. The Government expects the incentive to encourage investment in telecommunications infrastructure, particularly in underserved areas, and support the country's digital transformation agenda.

The Committee also reviewed amendments to the Telecommunications Tax Act, No. 21 of 2011, aimed at regularising existing tax rates, improving the treatment of tax defaults, and strengthening transparency in tax administration.