Budget proposals consistent with macroeconomic policies
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NCCSL officials at the media briefing
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Overall Budget proposals are consistent with the macroeconomic policy
framework and the economic thrust sectors that have been pursued during
the past few years, National Chamber of Commerce of Sri Lanka (NCCSL)
sources said.
NCCSL, President Sunil Wijesinha said that some of the NCCSL
proposals in areas such as agriculture, small and medium enterprises,
insurgence, infrastructure and shipping have been incorporated in the
budget.
Government initiatives to accelerate the irrigation system upgrade
and incentives and encouragement to the overall agriculture sector
covering small-holdings and large plantation companies is most welcome
since this sector contribute to the GDP growth and rural and regional
development.
“We had many discussions with the Consumer Affairs Authority (CAA)
and the relevant ministries to remove price control of chicken because
price control has caused serious problems for poultry farmers,” he said.
Ever increasing utility and poultry feed prices had a serious
negative impact on the industry. The budget has come up with a new price
control system based on cost structure.
Incentives given to the SME sector, women entrepreneurs and
self-employed are also encouraging.
“Although there is consistency in the macro policies we have noted
inconsistencies with regard to specific revenue proposals. For example
threshold limits of VAT for supermarkets has been brought down to Rs 250
million within one year,” Wijesinha said.
The corporate tax rate of SMEs has been increased from 10 percent to
12 percent within one year. Additional tax on banks has been imposed
again partially nullifying the positive effect that was brought by tax
reduction three years ago.
“For the government to achieve its budget deficit target, it would be
extremely necessary to reduce the financial losses of government-owned
enterprises." "We would have been happy to see some specific measures to
make government-owned enterprises more efficient and their management
accountable,” he said.
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