The Colombo chamber movement is up in arms over a decision to increase BTT to five percent, saying it’s not only bad for business but will affect consumers.

The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) protested over the ad hoc policies and said this will reduce business and affect all sectors of the population. “Are they trying to reduce employment, close shops?” asked FCCISL President Nawaz Rajabdeen.

The National Chamber of Commerce of Sri Lanka (NCCSL) urged the government not to increase the BTT on sale of certain goods from current one percent to five percent in the west. In a statement, it expressed concern about the sudden decision to increase this levy as it will affect the industry adversely.

BTT was increased on items such as gold jewellery, costume jewellery, furniture made out of wood and all type of motor vehicles including motor bicycles, three-wheelers and tractors. “Although the increase is confined to the western region this will affect the entire country as 80% of the business in the country is confined in the western region,” it said. The increased BTT will add to rising costs like continuous increases of electricity tariff and fuel prices, a point also expressed by Mr Rajabdeen.

He noted that in an earlier instance BTT was raised to five percent and then brought back to one percent as people stopped paying taxes. “They (businesses) will have transactions in other provinces and give delivery in Colombo to avoid taxes,” he said.