CNCI budget proposals favourably considered by Treasury

The Ceylon National Chamber of Industries (CNCI) headed by its Chairman A.K. Ratnarajah recenty met Treasury Secretary Dr. P.B. Jayasundera to discuss proposals forwarded by the CNCI for next month’s national budget.

On the levy of withholding tax on payments of Rs. 50,000 and above, Dr. Jayasundera termed it as a 'nuisance tax' enormously increasing the work load of the business community as well the Department of Inland Revenue and agreed to consider it to be abolished.

On imposition of CESS on finished goods which are being manufactured locally but imported under the Sri Lanka-India FTA, he spoke in favour of this proposal too and agreed to consider same.

On the numerous types of taxes, the chamber said it is a waste of time and resources on the computation payment and documentation relating to multitude of taxes.

The chamber proposed amalgamation of these taxes where possible and elimination of redundancies in order to simplify the payment and thereby reduce the burden of tax payer.

Dr Jayasundera agreed to explore alternatives to the adverse effects on cash flow and liquidity of companies having to pay advance tax and to prove non liability to obtain refunds afterwards.