President Mahinda Rajapaksa presenting ‘Budget 2015’ to Parliament announced a number of subsidies, price controls and protectionist policies just two months ahead of a crucial presidential election.
Giving relief to the public, President Mahinda Rajapaksa reduced the domestic water supply charge by 10% while reducing Value Added Tax to 11 %. PAYE tax was also reduced to 16%.
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Budget 2015 also increased certified rice for paddy to Rs. 40 along with continuation of fertilizer subsidy. In addition, certified price for rubber was increased to Rs. 300 per kilogram.
A special tax scheme for motor vehicle imports will be imposed instead of the present system, President Rajapaska said. He further added that the government would be able to collect additional Rs. 5 billion by streamlining vehicle import taxes.
He also allocated Rs. 1500 million for postal sector while saying motor cycles will be given to postmen, instead of cycles.
“Rs. 2000 million will be allocated to rectify salary anomalies in the railway sector,”
The President also allocated Rs. 750 million to start new water supply schemes, giving more importance to areas with kidney and water related diseases.
In addition, an entry tax of USD 100 was imposed for Casinos operating in Sri Lanka.
“New taxes imposing with effect from tonight will be aimed at protecting local industries,” President Rajapaksa said in his 10th budget speech.
