NCCSL says budget addressed burning issues

BY ANJANA Samarasinghe

NATIONAL Chamber of Commerce of Sri Lanka (NCCSL) says although the newly introduced budget imposes new taxes and increases tax rates the context in which it has been brought into the budget is recognised.

President of NCCSL Nirmalee Samaratunga said that although increases of tax is negative, the reasons for the increment is understood and there will be no major impact.

NCCSL commended the proposals to streamline the tax administration, as it will board base the tax net and reduce the inconvenience to genuine tax payers whilst increasing collection.

The proposed incentives provided to good tax payers is also welcome as it is essential that those liable to pay tax, do so, if tax revenues are to be increased in sustainable manner," she said.

Samarathunga said that infrastructure development and building investor confidence is vital to attract foreign investors. "It is positive to note that budget has highly focused on infrastructure development and power projects."

Budget also have addressed the needs of exporters by the proposal to reduce income tax on of export agriculture and providing duty concessions on packaging. The importance of agriculture sector to the economy has also been recognised," she said.

NCCSL also said that they are pleased on the reduction of taxation of SMEs and special focused on selected industries and service sectors.

"The proposal to grant exemption to financial institutes that provide loans to set up regional business is a positive move if there is a mechanism to ensure that this will be passed on to correct borrowers rather than large and prime borrowers," she said.

"However the budget has not specially focused on areas such as labour requirements and privatisation," Samarathunga said.