Fast track industrial development in 2008 Budget, say Chambers

by Lalin Fernandopulle

The Sri Lanka Chamber of Small Industries (SLCSI) said it strongly believes that prior to enacting the Micro Finance Industries (MFI) Act the Government should introduce a micro industry friendly fiscal policy to protect micro industries in the country.

SLCSI Secretary General Rohan de Silva said as in many developing countries in the region micro industries are considered the gateway to large-scale industrial development and employment generation.

"Taking a cue from India the Government should support micro industries with non tariff benefits and other incentives so that the small and medium scale industries will benefit", he said.

The SLCSI proposes that the tax be reduced from 15 percent to 10 percent, exemption from the 5 percent non-refundable VAT and increase the VAT threshold from Rs. 1.8 million to Rs. 5 million on micro industries whose taxable turnover is less than Rs. 5 million and the value addition is over 35 percent.

The Chamber has also called upon the Government to introduce substantial non tariff barriers on the import of finished goods to protect and boost local manufacturers and industries.

The Secretary General said that the Chamber has called upon the Government to grant special export incentives which will give greater confidence to exporters and strengthen the country's export sector.

The Ceylon National Chamber of Industries has proposed that the Government allows all raw materials to be imported duty free as BOI companies and exporters are granted such benefits.

Chairman CNCI, A. K. Ratnarajah said with the full implementation of the Indo Sri Lanka Free Trade Agreement (ISLFTA) in March next year over 80 percent of the goods will be imported duty free. Duty free concessions should be granted on the import of raw materials to help local industries to compete better, Ratnarajah said.

The Women's Chamber of Industry and Commerce (WCIC) has called upon the Government to elevate the experience profile of migrant women workers by increasing their monthly salary.

Chairperson WCIC, Ramya Weerakoon said there is an acute shortage of women workers in the industries due to large numbers seeking overseas employment.

"The garment industry is one of the most affected industries in the country due to the shortage of skilled workers. If the trend continues the industries will be affected and industrialists will be forced to seek production in other countries where labour is freely available", she said.

She said the Chamber has called upon the Government to introduce rural development schemes which will provide self-employment opportunities to women and help them to market their products.

The National Chamber of Commerce of Sri Lanka(NCCSL) has identified programs for regional development, uniformity in holidays for sectors, consistency in Government policy pertaining to industries and business sectors and simplification of the tax system under macro economic reforms as priorities for the 2008 Budget.

Chamber sources said that it called upon the Government to fast track development in the fisheries, industrial, transport, educational and agricultural sectors.

"The judicial system of the country needs to be efficient and the law and order mechanism should be vibrant, the sources said.

The NCCSL has also proposed that the savings rate be increased and stressed the need for a industry-friendly environmental regulation in the country.

The sources said tax evasion in the country needs to be dealt with strict enforcement of the law.

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