Budget at a glance
* The 15 per cent VAT and Excise Duty on petrol will be reduced to
five per cent from January 2008.
* Price of a bottle of liquor will be increased by Rs.35 while a
cigarette by Rs.2.
* Granting upto maximum Rs.1 million to all Co-operative Societies to
be setup modern outlets to distribute essential commodities.
* Co-Operative Societies and associated Rural Banks will become tax
free enterprises.
* Distributing a welfare pack containing essential commodities at tax
free prices to low income groups through the Laksathosa, Co-operatives
and budget shops.
* Purchasing of a ship to be registered under the Sri Lankan flag
will be exempted from the Port and Airport Development Levy.
* A Cess of Rs.50 per kg. is proposed to be imposed on textile
imports for domestic consumption.
* Number of year five scholarships to be increased from 10,000 to
15,000 to facilitate the education of low income groups.
* 15,000 graduates to be recruited in 2008.
* Introducing an Environment Conservation Levy Act ensuring
environment conservation.
* Increase of the Economic Service Charge on the sale of liquor and
motor vehicles from 0.5 percent to 1 percent.
* Granting of a 5 year tax holiday for any investment over Rs.50
million and generating employment for over 50 people for the development
activities under the Negenahira Udanaya.
* VAT exemption for milk and diary products.
* VAT on local sugar and rice based products removed.
* A Rs.15,000 million allocation to continue the fertiliser subsidy.
* Increase of the Social Responsibility Levy from 1 percent to 1.5
percent in support of further strengthening the National Action Plan for
children.
* Extension of tax concessions on the importation of essential
equipment required for the production of films and tele-dramas.
* Increase of tax relief granted on investments for production of
films from Rs.25 million to Rs.35 million.
* Public servants to receive a cost-of-living allowance of Rs.2,500
from January 2008 and Rs.2875 from July 2008 in addition to their
monthly salary. |