The Ceylon Chamber of Commerce welcomes the proposals in Budget 2021 which are business friendly, production oriented and demonstrative of policy continuity. The Budget has focused on boosting economic growth by enhancing exports, providing investment relief for key thrust sectors supplemented by public investment proposals, promoting capital markets and supporting the growth of Startups and SMEs.
The emphasis on tax policy continuity and measures announced to strengthen tax administration demonstrates a strong commitment to policy consistency while strengthening and broad basing revenues.
The Chamber in its Pre-Budget proposals highlighted the importance of the Government maintaining the current tax laws and rates at least for the next five years or so thereby providing the necessary consistency in tax policy. The adoption of a consistent tax policy under the National Budget 2021 would not only provide a platform for proper planning for business but would also help the Government in long term cash flow planning and strengthening fiscal consolidation.The Chamber also welcomes the tax relief for investment in machinery and equipment for domestic manufacturing and exports and the relaxing of import restrictions on certain sectors in line with past recommendations by the Chamber.
Proposals on enhancing Digital governance, investments in technology and infrastructure including rural connectivity to facilitate digital inclusion are also notable. The Chamber trusts that the positive benefits accrued from the macro stability set out by National Budget 2021 will provide a foundation for sustainable growth acceleration over the medium and long-term as envisaged.