GOVT. INTRODUCES AMENDMENTS TO BUDGET PROPOSALS
Government came out with some adjustments to 2018 budget proposals and thus introduced few incentives. Minister of Finance and Media Mangala Samaraweera who wound up the second reading of the debate announced that some changes made came to be effective with midnight on Wednesday, while others came to be effective from midnight yesterday.
Therefore, the loan value ratio for hybrid vehicles was 50/50 earlier was reduced to 30/70 percent with effect from midnight yesterday. This was a response to the requests made by several vehicle owners.
He said all individuals who had already opened letters of credit to bring down vehicles will not be subjected to new duty structure in April 2018. Other concessions include delay in enforcing the condominium tax till end of 2018.
Also the Minister announced that some agricultural items which is in the list of 1,200 goods, which were to be released from importation restrictions The loan value ratio for hybrid vehicles was 50/50 earlier was reduced to 30/70 percent with effect from midnight yesterday. This was a response to the requests made by several vehicle owners will be continuously protected. This is another amendment made to the budget as 1,200 goods were to be liberalized according to the original proposal.
“We want these reforms to empower our farmers to have the flexibility to produce the crops that give them the best returns. In doing so, we will of course be sensitive to issues of food security, the environment and land rights,” he said.
He said country’s labour laws dictate and restrict working hours of our women and men. They do not reflect modern working conditions including technological innovations that enable work from home or remote work.
“Our labour laws do not even include most contemporary jobs. We intend to modernise these laws to enable our men and women to have more choice in their working conditions and how they work. This will make it easier for companies to hire people and create jobs. In these labour market legislative changes we will in no way undermine the rights of the worker and dignity of labour,” the Minister added.
Painting a bright picture on the future economic development of the country, Mr. Samaraweera said country will see a budget surplus by end 2019 for the first time in 60 years.
“Macroeconomic conditions have now by and large stabilized and the economy is ready to take off once again. But this economic take-off cannot happen in the same unsustainable manner as soon after the war. We can’t create artificial demand stimulus and given the accumulated debt, there is limited fiscal space to engage in a public investment drive. The only avenue for sustainable growth is through private investment and the external sector,” he also said.