Sunday, November 11, 2007

Budget at a glance

* The 15 per cent VAT and Excise Duty on petrol will be reduced to five per cent from January 2008.

* Price of a bottle of liquor will be increased by Rs.35 while a cigarette by Rs.2.

* Granting upto maximum Rs.1 million to all Co-operative Societies to be setup modern outlets to distribute essential commodities.

* Co-Operative Societies and associated Rural Banks will become tax free enterprises.

* Distributing a welfare pack containing essential commodities at tax free prices to low income groups through the Laksathosa, Co-operatives and budget shops.

* Purchasing of a ship to be registered under the Sri Lankan flag will be exempted from the Port and Airport Development Levy.

* A Cess of Rs.50 per kg. is proposed to be imposed on textile imports for domestic consumption.

* Number of year five scholarships to be increased from 10,000 to 15,000 to facilitate the education of low income groups.

* 15,000 graduates to be recruited in 2008.

* Introducing an Environment Conservation Levy Act ensuring environment conservation.

* Increase of the Economic Service Charge on the sale of liquor and motor vehicles from 0.5 percent to 1 percent.

* Granting of a 5 year tax holiday for any investment over Rs.50 million and generating employment for over 50 people for the development activities under the Negenahira Udanaya.

* VAT exemption for milk and diary products.

* VAT on local sugar and rice based products removed.

* A Rs.15,000 million allocation to continue the fertiliser subsidy.

* Increase of the Social Responsibility Levy from 1 percent to 1.5 percent in support of further strengthening the National Action Plan for children.

* Extension of tax concessions on the importation of essential equipment required for the production of films and tele-dramas.

* Increase of tax relief granted on investments for production of films from Rs.25 million to Rs.35 million.

* Public servants to receive a cost-of-living allowance of Rs.2,500 from January 2008 and Rs.2875 from July 2008 in addition to their monthly salary.

Full Budget Speech