Budget development oriented - NCCSL

BUDGET: The President of the National Chamber of Commerce of Sri Lanka, Nirmali Samaratunga commenting on the 2007 budget from a private sector perspective, highlighted the joint consultative approach of the Government with the private sector in the preparation of the budget proposals including discussions with the President and the Secretary to the Treasury.

Many of the issues both macro and sectoral brought up at these discussions had been considered and included in the 2007 budget. She said the 2007 budget is a development-oriented budget with an emphasis on the medium-term with a 10 year framework.

In terms of the impact on business, she said there were no new types of taxes, which was welcome. She added that several changes had been made to tax rates and taxation bases, which would have an adverse impact on some businesses whilst benefiting others.

However on the whole there was no material impact and in view of the need to raise revenue for the development programme planned, this was to be expected.

The Cess and other levies on specific imported goods was not only for raising revenue but also to support the domestic value added industries such as leather and jewellery.

She said the budget presented many opportunities for the private sector in terms of new businesses such as Entrepot Trade and the far-reaching and comprehensive Krushi Navodaya programme which sought to take the agri sector to a higher level through modernisation and greater value addition. SME's too had been given specific support.

In view of the need to gear the country, to undertake massive infrastructure programmes, the construction sector too had received support and strength, Samaratunga said.