THASL welcomes Budget proposals

• Hails tax concessions of NBT and CESS 
• Believes registration of informal sector will create more equitable industry 
• Positive of moves to increase women in the formal workforce 
• Grateful for Fin. Min. taking industry suggestions onboard   

The Hotels Association of Sri Lanka (THASL) yesterday welcomed a slew of proposals included in Budget 2019, including tax concessions, efforts to increase women in the formal workforce, and residential visas as measures that would boost economic growth and create employment opportunities.  

THASL Chairman Sanath Ukwatte thanked Finance Minister Mangala Samaraweera for accepting industry proposals and presenting a Budget that aims to increase exports and attract investment.  

Given below is the THASL statement.

“The removal of Nation Building Tax (NBT) on foreign currency receipts is a significant step forward. The long-felt need by the industry, and an important move by the Government, to make mandatory payment in foreign currency by foreign guests and other suppliers, makes removal of NBT on foreign currency receipts for hotels even more essential and urgent.

“Another significant move by the Government is the introduction of a regulatory system for the informal sector, by making it compulsory for online booking agents and websites to feature only accommodation suppliers who are registered with SLTDA. This will bring all stakeholders involved in tourism closer, thereby creating a level playing field, which will eventually enable the Government to increase revenue by way of taxation and licensing fees.

“The tourism industry has the potential to become the foremost foreign exchange earner for the country. Lowering of CESS on selected imported items for hotel refurbishment will greatly help the local hoteliers to upgrade infrastructure and services, and will also enable them to be more competitive in an increasingly challenging global and regional environment.  

“The provision of employment opportunities for youth, particularly women, requires substantial investment of capital. Introduction of flexible working hours for women, and offering financial assistance to establish high quality day-care centres for children of working mothers, will attract women to enter the workforce in hotels, and THASL welcomes this timely initiative. 

“Also, the major reduction in Economic Service Charge (ESC), and bringing the tourism industry in line with the export sector will serve as a great boost for the industry. The recent announcement by the Government on visa-free entry for selected Asian and Western nationals, and the announcement made at the Budget presentation offering resident visas for foreign nationals investing in selected residential accommodation, will greatly enhance the image of the country as a tourist-friendly destination, which will eventually ensure more Foreign Direct Investments (FDI).

“These moves indicate that the Government has its eye on long-term development of the tourism industry. All in all, THASL has been lobbying for greater support from the Government to develop the tourism industry, and to increase economic benefits for the country by way of higher foreign exchange earnings and creating employment opportunities for the country’s youth. 

“THASL is appreciative of the Government’s commitment to implement structural and regulatory changes for the long-term benefit of the industry in a difficult fiscal environment, as announced in the Budget of 2019, and it has paved the way to build a deep level of trust between the Government and the tourism industry. We look forward to further collaboration in the national interest in months to come.”