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| Sunday, 17 February 2002 |
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NCCSL's budget proposals The National Chamber of Commerce of Sri Lanka (NCCSL) has made proposals to the Government to be considered in the forthcoming Budget 2002. They include tax and non-tax issues. Following are some of the highlights of sectoral recommendations made by the NCCSL . Health and Nutrition care National Health Insurance Scheme Introduce a national health insurance scheme to cover all employees. Convert the Employees Trust Fund (ETF) to an Employee Health Insurance Fund. The ETF contribution made by employers on behalf of their employees could be utilised for this purpose. Part of this contribution could be used as the premium payments by employees. Ayurveda sector Make the supplies to the Ayurveda and health sector zero-rated for GST purposes, enabling the industry to get refunds of the input GST paid. Make all Ayurveda preparations manufactured and supplied by companies, which are registered with the Department of Ayurveda, zero-rated for GST. Introduce a duty rebate scheme applicable to the ayurveda sector, enabling the manufacturer to have the import duty paid on packaging and raw material refunded. In the alternative, make all medicaments imported into Sri Lanka liable for duty and GST, thus creating a level playing field. Make accessories for medical equipment also entitled to duty-free and GST waivers. Labour Labour law reforms Recognition of Trade Union Amendments of 1999 to the Industrial Dispute Act has made it compulsory for the employer to recognize and engage in collective bargaining with trade unions. It is recommended that recognition and engaging in collective bargaining by the employer are made voluntary but not compulsory or in the alternative, allow the employer to de-recognize the trade unions which carry out unfair labour practices. Make it mandatory for the workers and trade unions to give written notice of strikes in advance. Getting a mandate through a secret ballot from the membership to call out a strike. Recommend that authorities guarantee the sanctity of collective agreement and their enforcement. State should refrain from intervening in matters covered by collective agreements. EPF and ETF Reduce the penalty for non-remittance of EPF during the stipulated period from 50% -10%. Credit half of the penalty to the employees' account. Allow employers to make a single pay order to remit both EPF and ETF together. Shipping industry Development of National Shipping capabilities. Remove customs duties, GST, NSL and other levies on import of ships and craft over 500 tons/500BHP. Exempt import or purchase of ships from normal Customs formalities required under Customs ordinance as a special case. Encourage registration of ships under Sri Lanka flag. Agriculture Abolish defence levy on seeds and planting material to encourage the use of high quality planting material. Invite private sector for greater participation in non-plantation agriculture. Support the establishment of marketing infrastructure for rural produce marketing. Export sector Remove the import duty and GST on import of machinery that are used for manufacturing and processing of export items. Abolish import duty and GST on imports of inputs for export processing. Banking and Finance Provide finances to SMEs and export industry at competitive rates through the two state banks so that private banks will be compelled to follow the same. Construction industry Create an apex construction ministry to bring together all construction activities and to promote the interests and well-being of the industry. Physical infrastructure Power Accelerate the implementation of the 100MW coal power plant. Accelerate the implementation of the upper Kotmale project and Moragahakande and other identified projects. Put out for tender BOT construction of the identified mini hydros. Create a new division to study and implement renewable energy projects. Airport Establish a second international airport and reconstruction of Katunayake to an international standard. Housing Set up a Rs 100 billion fund to grant housing loans at low interest rates. (An international bond can be floated to raise the funds.) It will facilitate the construction of an additional 100,000 houses per year. Information and communication technology Introducing an SME type concessionary loan scheme for working capital requirements of the IT industry, pegged to the US Dollar Federal Reserve PLR or LIBOR. |
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