2015 interim budget proposals
Taxes on over a dozen consumer goods ranging from sugar, milk powder and canned fish have been reduced in the interim budget for 2015 presented by Finance Minister Ravi Karunanayake and customs duties on cement and steel have been removed. The salaries of state employees would be increased by Rs.10,000 and Rs.5000 would be paid to them from April and the second installment would be added in July. Pensioners would get their pensions increased by Rs.1000. A 400 gram tin of Sustagen will be reduced by 100 rupees with the waiver of a 15% customs duty tax while the tax on sugar will be reduced by 10 rupees to Rs.18 a kilogram bringing the retail price to around 85 rupees a kilogram. The import tax on wheat flour will be reduced by Rs.10 per kilogram which will lead to reduction in price of wheat flour by 12.5 rupees per kilogram and the price of a loaf of bread will be reduced by six rupees. Taxes on green gram, sprats, canned fish, coriander black gram, maldive fish, turmeric and crushed chillies have been reduced.
Also, import of vehicles below 1,000cc engine capacity will see a 15% tax reduction, customs duty on cement and steel billets will be removed and the registration fee for marriages has been reduced to Rs.1000 from Rs.5,000. Meanwhile, mobile telecommunication service providers have been requested not to pass-on the 25% tax on prepaid consumers. Despite the government is losing Rs. 92.4 billion as a result of the reductions of these taxes, the levied taxes on large corporates, telecom firms and television channels have been increased while large mansions were taxed Rs.1 million.
However, casino owners in the country, irrespective of their dates of registration, have been levied a one-time payment of Rs. 1 billion. Carlton Sports Network (CSN) which was owned by the former President's son, Yoshitha Rajapaksa has also been levied a Rs.1 billion one-time tax. It was stated that the sports channel has not paid any money to the government, since its inception. Satellite television operators in the country will also have to pay a one-time tax of Rs.1000 million. In addition to that, Mobile phone operators will have to pay Rs.250 million of onetime tax. SriLankan and Mihin air will be merged to reduce losses.
