NCE chief hails budget proposals

President, NCE, Kulatunga Rajapakse welcoming last week's budget proposals said that the government took many steps to give relief to low income groups - reawakening of local enterprises and the improvement of local products. These are steps in the right direction

He said that three vital proposals submitted by the NCE have been accommodated which includes the simplification of the tax system, simplification of stamp duties and strengthening the national shipping line.

The government has gone a step further and exempted all ships registered under the Sri Lankan flag from the Port and Airport Development Levy. This is a step in the right direction and we welcome it as it will help all exporters, he said.

He said that the removal of VAT on dairy products, sugar and rice products will help save foreign exchange. In addition these measures will encourage people to move into the dairy, sugar and rice based industries, which will help develop the economy.

Rajapakse said that a duty of Rs. 40 per kg would be levied on imported material. This will benefit the handloom industry, which was hampered from all directions. This will also halt the flooding of imported material and boost the handloom industry.

Rajapakse said that the environment tax of Rs. 20 should also have been included in the taxes already paid by taxpayers since the business sector needs a simplified and efficient tax system.

He said that the government should ensure that the monies collected as tax are used for the specified purpose as all taxpayers are waiting to see good governance and transparency which will help the country achieve tremendous growth.

SG