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The government hopes to set up a road fund, monies of which will go towards maintaining and developing Sri Lanka quote s road network.rn rnContributions to the road fund will come from an additional charge to be imposed on licence renewals.rn rnThe government estimates to generate up to 500 million in 2003, and will directed […]

Unit trust and mutual funds will be taxed once, and income will be tax free in the hands of the unit holders according to the latest budget proposal.rn rnMutual funds that invest in specified areas will be taxed at only 10 per cent on interest and dividend income while others will be taxed at a […]

The government is expecting to end the year with a budget deficit of 8.9 per cent of GDP, which is just 0.4 per cent off target.rn rnThis is the best any government has done in recent years, with deficit target of 1.5 per cent to 2.5 percentage points being an accepted norm.rn rnThe overall deficit […]

All new public sector employees will have to contribute towards their pensions from January 01.rn rnThe EPF style scheme envisages an 8 per cent contribution from employees and 10 per cent contribution from the state.rn rnSalaries will be adjusted to conform to this.rn rnMeanwhile the government is also planning to close down all redundant government […]

A new tea sector association will talk over the responsibility of regulating the industry finance minister K. N. Chocksy told parliament today.rnThe association will also set up standards for Sri Lankan tea and enforce them.rn rnThe apparel industry will also get a new apex body to guide the industry towards the end of the multi-fibre […]

Government stuck to its word reducing corporation tax rates to 30 percent as promised in its 2002 budget.rn rnCompanies with a taxable income of over Rs. 5 million a year will qualify for the new tax rate.rn rnCompanies with taxable income of less than Rs. 5 Mn will continue to be taxed at 20 per […]

In a potentially controversial move a 10 per cent VAT would be slapped on banks from January 2003.rn rnFinance Minister Choksy said no input credit will be permitted but VAT will not be charged on gross income but on a base composed of net profits and employee emoluments in a bid to prevent a rise […]

Budget Speach – Part Irn rnBudget Speach – Part II

A new Economic Management Law will be brought to parliament, which will compel each ministry to report to parliament the progress made on reforms every six months.rn rnldblquote Under that law, the budgets for the respective ministries will be directly linked with the progress made in implementing reforms, dblquote Finance Minister Chocksy told Parliament on […]

VAT will be slapped on wholesale and retail trade from July 01 next year.This will apply to businesses with a turnover of more than Rs 1.8 mn a year.