Confusion among Treasury officials over budget amendments
View(s):Sri Lanka’s Treasury is in the dark over the submission of finance bills, necessary circulars and guidelines to collect revenue following unprecedented amendments introduced in the 2016 Budget during and after the committee stage of the debate.The issuance of relevant circulars, gazette notifications and operating instructions to the relevant line ministries and agencies, giving effect to the budget proposals has been delayed due to uncertainty in the administration of the Finance Ministry, official sources revealed. Widespread speculation of heads rolling at the ministry in the New Year has hampered work, a senior official who wished to remain anonymous told the Business Times.
Another issue that has led to the confusion is that Finance Minister Ravi Karunanayake has his own team, including outside consultants, apart from Treasury officials.Another pending task was to present in Parliament the related amendments to the Appropriation Bill 2016, including Revenue and Expenditure figures in the Summary of the Budget 2016 and to effect any consequential amendments to the draft Budget estimates.
The implementation of revenue proposals with effect from January 1 has become a major issue for several departments including the Inland Revenue Department,
Customs, Registration of Companies, the Immigration and Emigration Department and the Excise Department as those institutions are yet to receive some of the circulars and guidelines.Amendments to Value Added Tax (VAT), Nation Building Tax (NBT) and Land taxes made in the 2016 budget have come into effect from January 1, Finance ministry sources said.Bills relating to all these proposals and subsequent amendments to Finance, Inland Revenue, Value Added Tax, Nation Building Tax, and Betting and Gaming Levy Acts have not been enacted in parliament to facilitate the budget proposals, parliamentary sources disclosed.