Chief Minister optimistic BTT will remain 1 per cent

by Anjana Samarasinghe

Chief Minister of Western Province Reginald Cooray has assured that the Business Turnover Tax (BTT) levy may remain one percent and will not be increased to five percent.

President of the Federation of Chambers of Commerce and Industries of Sri Lanka (FCCISL) Nawaz Rajabdeen said that an additional 5 percent BTT levy happens to be effective from April 1 but the Chief Minister of Western Province has pledged to hold it to one per cent which is the current taxation in the Western Province.

A final discussion regarding the issue will be held on April 2. This additional 5 percent levy is already being implemented in other Provincial Councils. There are many requests to reduce this amount to 1 percent from Chambers in other Provincial Councils. "We want to bring the BTT levy to the same level in all Provincial Councils", he said.

This tax will specially affect imported building materials such as tiles, bathroom fittings, timber, glass and electrical items. After the tsunami many building constructions have commenced. At a time like this, tax increments on building materials may badly affect the consumer. "This will make a negative impact on the building industry and most of the employees who are engaged in the construction industry may lose their jobs", he said.

The downfall of the construction industry will affect the country's economic growth.

The Government can earn revenue from charging high taxation through luxury items, which only a few may want. There should be a proper method in government revenue collection, Rajabdeen said.