NCCSL calls to withdraw increased BTT in WP

National Chamber of Commerce of Sri Lanka (NCCSL) representing a large number of business organisations in Colombo and elsewhere in the country learns that the Government has taken a decision to increase the BTT on sale of certain goods from current one percent to five percent in the Western Province.

The Chamber is concerned about this sudden decision, as it will affect the industry adversely. BTT was increased for selling of items such as gold jewellery, costume jewellery, furniture made out of wood and all type of motor vehicles including motor bicycles, three-wheelers and tractors.

Although the increase is confined to western region this will affect the entire country as 80 per cent of the business in the country is confined in the western region.

At a time when the business community has been subject to continuous increases of electricity tariff and fuel prices resulting in the increase of all utility prices and raw material, increase of BTT by four percent has put the business community in greater difficulty. On the other hand business organisations are subject to stringent labour regulations prohibiting them from retrenching workers even temporally as a means of reducing cost of production when the industry faces severe price competition.

Under the circumstances the National Chamber of Commerce of Sri Lanka urges the government to withdraw the four percent increase of BTT in the Western Province to avoid collapse of the businesses and industry.