Ceylon Chamber says Budget with a clear medium term focus
Saturday, 23 November 2013 08:57
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The Ceylon Chamber of Commerce appreciates the continued commitment to fiscal discipline displayed in Budget 2014.
We believe that efforts taken by the Government to enhance tax revenue, continue with tax reforms announced in the Budget 2011 and the initiatives taken to improve the tax administration through computerisation of the Inland Revenue Department will contribute towards fiscal consolidation envisaged in the medium term. A predictable and transparent tax regime is necessary to improve the investment climate.
We are pleased to note the recognition accorded to promotion of exports, crucial to improving Sri Lanka’s external payments position. The commitment to maintain a flexible exchange rate regime and additional encouragement granted to lead export industries and for export of services such as shipping services and IT/BPO are welcomed. The encouragement given to the IT/BPO sector in face of Sri Lanka being recognised as the ‘Outsourcing Destination of the Year’ will help the sector to accelerate its pace towards its export targets.
The concessional tax rates offered to the professionals is also a positive move and we hope this will contribute towards retaining the professionals from migrating to other countries and in attracting our diaspora to return to the country.
The medium term directions taken in the budget on addressing education, skills development and health are important. The proposals on introducing new fields of studies to universities such as electronics, petroleum, etc. that are relevant for future development of the country and the emphasis placed on vocational skills development in growing sectors such as construction, tourism and ship building are opportune.
We also note that the Government has retained its thrust on development of the Agriculture sector and the SMEs by allocating funds to create a conducive environment for these sectors to grow. This paves the path for equitable development, a key focus of the Government.
The chamber will review the tax proposals with the Tax Committee and its membership within the next few days and will forward its comments to the Government on implementation of the proposals to extend our support towards effective implementation of these proposals.
