COLOMBO: Sri Lanka’s budget 2017 has signaled continuity in the economic policy priorities of the government, but successful implementation should be the benchmark against which it is measured, the island’s leading business chamber said.
“Budget 2017 seeks to continue the government’s focus on modernizing the economy, inclusive growth, strengthening the middle class, and re-balancing towards an exports and private investment driven economic trajectory,” the Ceylon Chamber of Commerce said issuing a statement.
“The efforts of the 2017 Budget to cut the deficit to 4.6 percent in 2017 and raise the tax to GDP ratio to 13.5 percent are laudable, albeit ambitious.”
However, thye CCC says clarifications are needed on implementation of several of the new tax measures.
“For instance new taxation of institutional unit trust investors, the removal of the Notional Tax Credit, and the move back to VAT refunds from the SVAT scheme.”
The CCC urges the Ministry of Finance to consult with relevant stakeholders fully before implementing these measures, to avoid negative fall outs.
