CCC optimistic tax revisions will stimulate growth

Thursday, 5 December 2019 00:25 - - {{hitsCtrl.values.hits}}

Hopes efforts to trim non-priority public spending will help manage fiscal deficits
Welcomes focus on improving profitability of SOEs, appointing competent leadership
Calls for reforms targeted at increasing FDIs, exports and productivity
Looks forward to ongoing engagement with Govt.

The Ceylon Chamber of Commerce (CCC) yesterday said it was optimistic that the revisions in taxes and levies recently announced by the Government would stimulate the economy.

The slew of tax proposals put forward as part of the stimulus package will revive economic growth and activity in the short-term, the statement said.

“Our expectation is that recent statements by the Government in curtailing non-priority public spending and the constrained approach to ministerial portfolios signals the seriousness of the efforts by the Government to manage the fiscal deficits.”

The Chamber welcomed the focus on improving the profitability of State-Owned Enterprises (SOEs) commencing with the establishment of a committee to select competent leadership for these State institutions. The application of best practice management and financial discipline to SOEs was a key recommendation within the Ceylon Chamber’s Sri Lanka Economic Acceleration Framework (SEAF) 2020-25.

“The Chamber hopes that the positive benefits accrued from the near-term fiscal stimulus will be sustained over the medium and long-term. This will require the Government’s focus on continuing progressive reforms on several key agendas including but not limited to those related to local and foreign investment, the expansion of exports and productivity enhancements in the public sector.”

As espoused in its SLEAF, the Chamber also looks forward to an environment of policy consistency and evidence-based decision-making which will provide a foundation for sustainable growth acceleration.

“The Ceylon Chamber, in its capacity as the premier representative of the private sector, looks forward to ongoing engagement with the Government with respect to maximising the translation of economic stimulus measures into accelerated growth and inclusive benefits to all segments of citizens and businesses.”