NCCSL says budget addressed burning issues
NATIONAL Chamber of Commerce of Sri Lanka (NCCSL) says although the
newly introduced budget imposes new taxes and increases tax rates the
context in which it has been brought into the budget is recognised.
President of NCCSL Nirmalee Samaratunga said that although increases
of tax is negative, the reasons for the increment is understood and
there will be no major impact.
NCCSL commended the proposals to streamline the tax administration,
as it will board base the tax net and reduce the inconvenience to
genuine tax payers whilst increasing collection.
The proposed incentives provided to good tax payers is also welcome
as it is essential that those liable to pay tax, do so, if tax revenues
are to be increased in sustainable manner," she said.
Samarathunga said that infrastructure development and building
investor confidence is vital to attract foreign investors. "It is
positive to note that budget has highly focused on infrastructure
development and power projects."
Budget also have addressed the needs of exporters by the proposal to
reduce income tax on of export agriculture and providing duty
concessions on packaging. The importance of agriculture sector to the
economy has also been recognised," she said.
NCCSL also said that they are pleased on the reduction of taxation of
SMEs and special focused on selected industries and service sectors.
"The proposal to grant exemption to financial institutes that provide
loans to set up regional business is a positive move if there is a
mechanism to ensure that this will be passed on to correct borrowers
rather than large and prime borrowers," she said.
"However the budget has not specially focused on areas such as labour
requirements and privatisation," Samarathunga said.