Budget 2015: A wide spread of benefits, says Biz Chamber
Saturday, 1 November 2014 00:48
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The Business Chamber of Commerce (BCC) in a statement said it was of the view that the 2015 Budget has a wide spread of benefits.
“As a consequence it is very considerate in respect of a large spectrum of the population, especially the fixed wage earners in both public and private sectors,” said BCC Secretary General Jagath C. Savanadasa in a statement. Following are excerpts:
We commend this humane vision of the government irrespective of the much-publicised ulterior motive that the reliefs proposed bears an electoral target.
As a Chamber of Commerce largely concerned with national economic growth through private entrepreneurial initiative the Budget has a great deal to offer to the business community.
Let us for example consider taxation which is vital for business. An endeavour has been made to avoid cumbersome and complicated taxes by the consolidation of levies such VAT, Excise Duty, NBT, PAL and import duty on vehicles.
The proposal to introduce online Customs and Inland Revenue levies immediately will contribute to expedite matters and will take Sri Lanka to a different level in international business circles.
The Government also proposes to provide land on a long term basis to establish 300 factories with the provision for lump sum depreciation for importation of plant and machinery and exemption from dividend tax. This should boost rural employment and also impact on economic growth in general.
New investments exceeding Rs. 500 million which are offered a seven year tax holiday given if such investments are registered with the Inland Revenue is yet another measure to expand industrialisation.
There is a good deal of pioneering enterprise spirit evident today in the industrial sector.
One only needs to visit the number of industrial exhibitions and fairs that are mounted in the country to realise this.
This reflects a host of new industrialists brimming with novel ideas even in a traditional sector like Tea. The term pioneering industry is hopefully applicable to them. It is indeed gratifying that in the Government intends to boost such industry by offering them a 10% discount in taxes payable.
The concessionary rates of tax granted to the manufacturing sector will enable export oriented manufactures to compete effectively in international markets.
The Government perhaps in the realisation of the vital contribution that the service sector is making to the overall economy has introduced a reduction in the import tax on trucks and lorries. This should provide a big boost to transportation and logistical activities which have become the new lynch-pin in both national and international growth.
Finally, we also wish to commend the tax reforms proposed in respect of the capital market. We view the exemption on investment in unit trusts with effect from 2015 in respect of US Dollar deposits and of US denominational securities as an important measure to develop unit trusts.
We wish to add a note of caution. That is the need to closely monitor the implementation of the various new fiscal measures within the given timeframe so as to benefit from the Budget proposals.
