Budget: Calls for policy changes and incentives

Biz community on Budget 2017:

By Lalin Fernandopulle

The government commenced preliminary work in formulating its second Budget which will be presented to Parliament in November.

The 2017 Budget aims at creating one million jobs, increasing income, rural economic development, affirmation of land ownership, as the midterm targets of the government.

The government targets six percent economic growth and a Budget deficit of 4.7 percent of the GDP. The other thrust areas are maintaining State investments between six and eight per cent of the GDP and an investment of 30 percent of the GDP. The 2016 Budget was subjected to 16 amendments.

Business Observer spoke to a cross-section of the business community to find out about the proposals they had made to the government to fast forward the economy.

The Ceylon Chamber of Commerce in its proposals for the 2017 Budget states that there should be a shift from profit-based incentives such as tax holidays to expenditure-based incentives focused on creating new investments.

President, National Chamber of Commerce of Sri Lanka (NCCSL), Thilak Godamanna said the NCCSL recommends that a consolidated development bank be set up to support SMEs with low cost funds and grants from recognized agencies through the bank to upgrade the sector.

The Chamber calls upon the government to provide incentives to manufacturers to shift to renewable energy sources to meet energy demand while providing other utility services at concessionary rates.

Chairperson, Women’s Chamber of Industry and Commerce of Sri Lanka, Rifa Musthapha said the Chamber appeals to the authorities to make available a percentage of the government procurement and contracts to women entrepreneurs as in the United States. The Chamber calls for flexible working hours for women in the private and the government sectors, grants and low interest loans for industries and green businesses, long-term lease on lands for new ventures, tax benefits for green businesses in the manufacturing and service sector, and rural infrastructure development to expand industries.

The National Chamber of Exporters (NCE) in its proposals stresses on the importance of branding Sri Lankan garments, spices, tea and gem and jewellery, as the country has inherent strengths in these areas which will help position it in the global market and increase exports.