President Mahinda Rajapaksa, presenting the UPFA Government's budget for 2009 said they have taken every possible step to take Sri Lanka economy forward despite unfavourable world economic trends. He said the Government will continue to take meaningful steps to develop the rural economy.
Here are some of the notable proposals in the UPFA Government's Budget for 2009, presented by President Rajapaksa as the Finance Minister in the Parliament today.
REDUCTION OF PETROLIUM OIL PRICES: Price of kerosene will be reduced by Rs. 30/- per litre, Diesel by Rs. 20/- per litre and Petrol by Rs. 15/- per litre.
BUSFARES REDUCED BY 25%: Following the reduction of the Diesel prices, The National Transports Authority will take steps to reduce bus fares by 25%.
COL ALLAWANCE FOT PUBLIC SERVETS INCREASED: The cost of living allowance paid for public servants will be increased by Rs. 1,000/-
COL ALLOWANCE FOR PENSIONERS INCRESED BY RS. 560/-: The present cost of living allowance paid to Government pensioners will be increased by Rs. 560/-
ELECTRICITY & WATER BILL DISCOUNTS FOR LOW USERS: The Government will protect lower income earners against the rising cost of living. Accordingly, a 30% will be granted to households who consume less than 90 units in their monthly electricity bills and a 20% for those who use less than ten units.
IMPORT TAX ON MILKPOWER & SUGAR UP: The President has proposed to increase the import tax on milk powder from Rs.5 to Rs.15 per Kilogram and import tax on sugar to be increased from 14% to 16%,
VAT REDUCED 3%: The current value added tax rate (VAT) will be reduced from the present 15% to 12%. However, VAT on liquor to remains at 20%.
6% TAX ON FIXED PHONES:A 6% surcharge will be added to all fixed telephone bills. At present the 6% tax is only applicable to mobile phones.