Budget 2011 would see a reduction in both corporate and income tax rates, a Minister said.
Deputy Finance Minister Dr. Sarath Amungama speaking at a function on Thursday said that that would benefit compliance, which in turn would compensate for any revenue loss due to reductions in tax rates.
Budget 2011 will be “investor, manufacturer, exporter” friendly, Amunugama, speaking at the Exporters’ Association of Sri Lanka’s (EASL’s) AGM said. EASL Chairman Ms. Nirmali Samaratunga in her speech said that cost control is key to maintaining the country’s export competitiveness.However a 40% increase in wages in the plantation sector last year without an increase in productivity is retrogressive, she said. High energy costs and high foreign exchange (US dollar) borrowings were also dampeners to export competitiveness, coupled with the delay in obtaining VAT refunds and payments under the Government’s Export Development Reward Scheme.
She said that exports should cater to the high end of the marke t in order to achieve the Government’s export target of US$ 20 billion by 2020. Samaratunga said that there was also a need for a National Export Strategy.
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