CCC hails commitment to fiscal discipline in 2014 Budget

The Chamber commended the continued commitment to fiscal discipline in Budget 2014, according to a Chamber spokesman.

The initiatives taken to improve the tax administration through computerisation of the Inland Revenue Department will contribute towards fiscal consolidation envisaged in the medium term.

"We believe that efforts taken by the Government to enhance tax revenue, continue with tax reforms announced in Budget 2011 and the initiatives taken to improve the tax administration through computerisation of the Inland Revenue Department will contribute towards fiscal consolidation envisaged in the medium term.

A predictable and transparent tax regime is necessary to improve the investment climate," the spokesman said.

"The promotion of exports is crucial to improving Sri Lanka's external payments position. The commitment to maintain a flexible exchange rate regime and additional encouragement granted to lead export industries and for export of services such as shipping services and IT and BPO are welcomed," he said.

According to him the encouragement given to the IT and BPO sector in the face of Sri Lanka being recognised as the Outsourcing Destination of the Year will help the sector to accelerate its pace towards export targets.

"The concessional tax rates offered to professionals is also a positive move and we hope this will discourage professionals from migrating and in attracting our diaspora to return to the country," the spokesman said.

"The medium term directions taken in the budget on addressing education, skills development and health are important.

The proposals on introducing new fields of studies in universities such as Electronics and Petroleum that are relevant for the future development of the country and the emphasis placed on vocational skills development in growing sectors such as construction, tourism and ship building are opportune.

"The Government has retained its thrust on development of the agriculture sector and SMEs by allocating funds to create a conducive environment for the sectors to grow. This will pave the path for equitable development," he said.

The Chamber will review the tax proposals with the tax committee and its membership within the next few days and will forward its comments to the Government on the implementation of the proposals," the spokesman said.