NCCSL expected more relief for apparel sector

The National Chamber of Commerce of Sri Lanka (NCCSL) expected more relief from the 2011 Budget for the apparel sector which lost GSP Plus concessions, said Deputy President, NCCSL, Sunil Wijesinghe at the NCCSL post budget briefing on Tuesday.

He said the GSP Plus concessions helped Sri Lanka's apparel exports to be competitive and increase exports to the world market. Sri Lanka has to compete with Bangladesh which exports garments to Europe duty free.

Sri Lanka lost the GSP Plus concessions in August which ended the timeline for the country to respond to the conditions laid out by the European Union (EU).

Over 7,000 items were exported to Europe under the special trade benefit granted to the country in 2005.The preferential trade access is enjoyed by a few countries selected by the EU.

Wijesinghe said chances were bleak that Sri Lanka would have gained the trade concessions in 2012 due to the vulnerability of the country.

The NCCSL on policy agrees to the setting up of a pension scheme for the private sector but the Chamber is of the view that there should be clarity and consultation for its implementation.

"Agreement by the employee, employer and the government is vital for the implementation of the scheme", the Chamber said.

The idea of a pension scheme for the private sector mooted by the National Labour Advisory Commission had been on the back burner due to the lack of consensus. The NCCSL said with the commissioning of Norochcholai, Upper Kotmale and other mega power projects there should be a stable tariff structure for electricity.

President NCCSL, Lal de Alwis said the Chamber had made several representations to the European Union officials in Brussels to revive the GSP Plus benefit to Sri Lanka. The NCCSL commended the 2011 Budget for its focus on long term development of the country.

"The 2011 Budget is comprehensive and encompasses all thrust sectors such as agriculture, fisheries, tourism, apparel, IT and value added exports," de Alwis said. "The Chamber urges the government to continue the tax free status for the agriculture sector for a further period", he said.

NCCSL hails the promotion of a knowledge based economy, Double deduction for research and development, reduction of income taxes, removal of debit taxes and withholding taxes, permitting foreign training,removal of turnover tax, tax holidays for new investment, promotion of local SMEs, incentives for value added exports and cess on exports of non value added raw materials.

Revenue for 2011 is Rs. 986.1 billion, a 35 percent increase from 2009 while expenditure is Rs. 1,419.9 billion, a 18.13 percent increase from 2009.

(LF)