Ranil tells MPs to look at big picture on FTAs

Wednesday, 22 June 2016 01:18 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama

Our Lobby Correspondent

Prime Minister Ranil Wickremesinghe yesterday urged the Parliament to consider the total volume and the value of cross border trade rather than criticising the loss of taxes by entering into free trade agreements.

Explaining the importance of volume based trade and added taxes at consumer levels at both countries, PM Wickremesinghe said: “Taxes reduce on both sides when we enter into trade agreements with countries. This reduces the tax income as well.

However, we need to assess the benefits from the trade at large. If you take a closer look, our port is used to reship goods to South Indian Ports. With the goods imported making use of free trade being sold in the market the BTT and the VAT provides revenue income. What we need to consider is the volume of goods traded and the value.”