Business Chamber of Commerce says several commendable proposals in 2014 Budget
Wednesday, 27 November 2013 00:09
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The Business Chamber of Commerce in a statement said it was pleased that Budget 2014 has several commendable proposals that would enable the economy to proceed on the path to development. "Yet there are new revenue proposals on which we await further clarification before we could comment on them," it said.
From a macroeconomic perspective and as a developing economy, what the country has achieved in terms of GDP growth of 6.4% in 2012 is noteworthy. This achievement is further enhanced by the fact that in the last 10 months of the current year it has reached a percentage growth in excess of 7% and is steaming towards 8% in the medium term. In other words the growth will reach this figure between 2014 and 2016 according to budgetary projections.
This is an unusually high growth level especially considering global economic conditions which though are improving have not recovered completely. Such growth we achieved last year was in the face of rising oil prices and uncertain weather conditions.
As a Chamber of Commerce with a preponderance of exporter members, we are relieved that there has been a recent growth in export. Such exports were affected by adverse conditions in the international markets.
The budget has outlined proposals for export diversification and exploring market access to three major Asian economies: China, Japan and India. Additionally, an endeavour will be made to promote exports to Saudi Arabia, Australia, South Africa and Brazil in addition to the countries mentioned above. We are glad that this is to be undertaken and it to an extent decreases our continued dependence on traditional export markets. The key proposal on Intellectual property and purchase of such property rights and the attendant expenditure being subject to tax deductions is a proposal that should be pursued with vigour.
We also support the idea of simplification of governance so as to facilitate transactions undertaken by the people. In a similar vein, the Government has also proposed a range of financial incentives to small businesses. We are especially pleased about the exemption of all levies imposed by local authorities on traders whose turnover is less than Rs. 50,000. Similarly we commend the proposed fast track development plan for youth in terms of skills educations. On the other hand the Chamber would like to obtain further clarification in regard to the new revenue proposals since the six categories outlined are highly relevant to private enterprise.
And finally, we are glad that an announcement has been made in regard to the negative list of import items for BOI projects. The requirement that the BOI could permit the import of the 28 items mentioned on a duty free basis only if such items are not available locally is a very worthy idea and should help boost local manufacturers.
