Budget Summary

[AnUsHa_SL]

Economic service tax on liquor and vehicle imports to be increased from 0.5% to 1%

[AnUsHa_SL]

source from www.dailymirror.lk

[Yasith]

Economic service tax on liquor and vehicle imports to be increased from 0.5% to 1%

what will be the impact on Vehicle prices....?

[sanjeev]

vehicle prices will go up again.most european countries giving lot of incentives to change older vehicles with new one.

[Gummybr]

Economic service tax on liquor and vehicle imports to be increased from 0.5% to 1%

It wont be only that. better check todays gazzette. Cos most of the taxes that were revised will be gazzetted today. They were not revealed yesterday. So expect it to be higher than that.

Dont forget that on top of these there will be more taxes and upon calculation you will get a higher %

[Sha7]

A Summary

Liquor and vehicle import tax to be doubled

Economic service tax on liquor and vehicle imports to be increased from 0.5% to 1%

Updated @ 11.25 a.m. / Nov 07

Rs. 2500 CoL allowance for govt employees

Rs. 2500 Cost of Living allowance for government servants from January and it will be increased to Rs. 2875 from June

Updated @ 11.10 a.m. / Nov 07

Private companies encouraged to seek funds overseas

Government plans to encourage local private companies to seek funds from foreign markets to ease the burden on local banks

Updated @ 11.08 a.m. / Nov 07

Tax concessions for investments under Negenahira Navodaya

Special tax concessions and 5 year tax holidays for substantial private investments in the Eastern province under Negenahira Navodaya

Updated @ 11.05 a.m. / Nov 07

10% phone tax on mobiles to CDMA as well

The 10% tax on mobile phones will be extended to CDMA phones as well

Updated @ 11.00 a.m. / Nov 07

Environment conservation tax introduced, houses, vehicles, phones to be taxed

Every family owning a house, vehicle and phones will be taxed Rs. 20 by a new environment conservation tax to be introduced through a new act.

Updated @ 10.50 a.m. / Nov 07

Five year tax relief for Co-operatives

In order to ease cost of living burden on low income families, co-operative societies and shops will be given a tax holiday of five years on VAT and other taxes

Updated @ 10.45 a.m. / Nov 07

No fuel hike in the near future - President

President said though oil barrel has reached USD 95 mark the govt would not increase fuel prices in the near future and the 5% levy on petrol will be abolished if there's are further hikes in world oil prices

Updated @ 10.35 a.m. / Nov 07

Revenue increased to 7.2% of GDP, USD 500 ml bond strengthens currency

The govt revenue was increased to 7.2% of GDP and local interests could be reduced to 17%, the President said. He added that budget deficit too has been reduced to 7.2% and local currency has been strengthened due to USD 500 bond which was oversubscribed despite the opposition campaign to scuttle it.

Updated @ 10.15 a.m. / Nov 07

Per capita income USD 1500 unemployment reduced to 6.2%

Per capita income of a Sri Lankan has reached USD 1500 mark and the government has managed to reduce unemployment rate to 6.2% , President Rajapaksa said during today's budget speech.

Updated @ 10.00 a.m. / Nov 07

President says SL maintains 7% growth

Delivering his budget speech President Mahinda Rakapaksa told Parliament today that the government has maintained 7% growth despite opposition claims otherwise. He said LTTE's Anuradhapura attack shows LTTE aversion for talks and maintained wiping out of "terrorism" is necessary before a political solution

Updated @ 9.50 a.m. / Nov 07

[The Don]

This is just a load of bull, the biggest bull is companies being asked to seek funds overseas to ease burden on local banks

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another bloody plan by the government to get more foreign currency in to the country to cover up emptying the treasury at an unsustainable rate !!!

but seeking funds from overseas then makes companies vulnerable to what happens in overseas markets apart from local markets !! I wonder if people are aware of the Nothern Rock incident recently over here!

also thanks to the current economic climate in our country the risk associated with investments over there must be high making it very difficult to raise capital elsewhere

the government has the responsibility of stabilizing the economy before making suggestions of that nature !!

How can it help banks to maintain their deposits when everything from deposits to cheque transactions are getting taxed !! no wonder local banks are struggling to cope !!

[Gummybr]

This is just a load of bull, the biggest bull is companies being asked to seek funds overseas to ease burden on local banks

censored censored censored

another bloody plan by the government to get more foreign currency in to the country to cover up emptying the treasury at an unsustainable rate !!!

but seeking funds from overseas then makes companies vulnerable to what happens in overseas markets apart from local markets !! I wonder if people are aware of the Nothern Rock incident recently over here!

also thanks to the current economic climate in our country the risk associated with investments over there must be high making it very difficult to raise capital elsewhere

the government has the responsibility of stabilizing the economy before making suggestions of that nature !!

How can it help banks to maintain their deposits when everything from deposits to cheque transactions are getting taxed !! no wonder local banks are struggling to cope !!

Well Don,

yes you are right, but read all the govnmnt newspapers. They claim it to be a ppl friendly budget, even Lalith K. agrees. But I read in the Mirror financial section a summary done by Dr. Harsha De Silva and it just exposes the plain truth about this so called ppl's budget.

Problem is this knowledge isnt sent to the ppl living outstation and who do not have access to media as we do. They only get one side of the story. They will praise the govn for the CoL and stuff like that but will turn a blind eye to reality the same way one guy in AL forum does. I can see that coming from him if he aint been banned from the forum.

[vista2007]

But I read in the Mirror financial section a summary done by Dr. Harsha De Silva and it just exposes the plain truth about this so called ppl's budget.

There is nothing to talk about the budget.

But that guy Dr. Harsha De Silva is hired by opposition to do a campaign on Sirasa TV, He is just doing a contract.

According to his analysis everything is bad till the opposition comes to power.

Don’t take that guy's analysis seriously.

[The Don]

Well Don,

yes you are right, but read all the govnmnt newspapers. They claim it to be a ppl friendly budget, even Lalith K. agrees. But I read in the Mirror financial section a summary done by Dr. Harsha De Silva and it just exposes the plain truth about this so called ppl's budget.

Problem is this knowledge isnt sent to the ppl living outstation and who do not have access to media as we do. They only get one side of the story. They will praise the govn for the CoL and stuff like that but will turn a blind eye to reality the same way one guy in AL forum does. I can see that coming from him if he aint been banned from the forum.

Gummy, this is really the fundamental problem in our country

For the strategic development of the country the most important segment of people are the middle classes, as they hold the blue collar jobs that run the country, they hold the deposits that empower the economy and most importantly they are the driving force behind the economy as the segment most influential in buying goods and services which is what keeps our economy ticking as its not as export based as it used to be.

But they do not form the political majority. And this is the problem with the type of democracy our country practices. A federal system actually would suite us much better, but at least that will give more power to the people, cos right now we don't seem to have much say in our life at all.

There is another divide emerging in our society, an economic divide vs divisions on race and religion. And I can assure you the consequences of this divide would be much more severe.

But looking at whats happening in Pakistan right now, we still have reason to feel good about ourselves, though i wonder how much longer it would be before the people start revolting in SL as well

well its a waste of time in a way talking about these things, because funny enough in our democracy we seem to have no say in what happens round us at all !!!

[weed]

this time is a real people's budget. the col allowance of 2500 is a good

[madmax]

this time is a real people's budget. the col allowance of 2500 is a good

I'm sure you're getting in tooo

[sharkster]

i think i know who weed really is lol... sounds too familiar but i'll keep it to myself...

[Dj shan]

this time is a real people's budget. the col allowance of 2500 is a good

Dude the name weed really suits you!! For telling these things!!

[The Don]

i think i know who weed really is lol... sounds too familiar but i'll keep it to myself...

Oh so tell Sharkster, as I am dying to know (unless it becomes an issue of personal security for you)

[sharkster]

Oh so tell Sharkster, as I am dying to know (unless it becomes an issue of personal security for you)

it's only a suspicion at the moment so it would be best not to disclose any names till i confirm identity...

[Gummybr]

this time is a real people's budget. the col allowance of 2500 is a good

EMPIRE STRIKES BACK!!

[StarScream]

Any idea of the impact on Vehicle prices? I think some cess tax has been increased by 15% and the economic service tax by 0.5% ... Any clue about the VAT increase? what kind pf a rough percentage are we looking at in vehicle price increase? 20% ??

[Supra_Natural]

i think i know who weed really is lol... sounds too familiar but i'll keep it to myself...

sharkster, I wonder if we're both thinking about the same individual here......VERY familiar

[Sha7]

this time is a real people's budget. the col allowance of 2500 is a good

This is already 2300 as I know. So the true increment is only 200

[Thanushka]

Hi,

Does anyone know the Net Impact on car prices.

Some say that 1Mil car will be charges only Rs.10,000.00 (1,000,000* 1%) making the net impact of increase Rs.5,000.00 (1,000,000*(1%-.5%)). Is it true.

I'm sorry for asking bcoz I don't have a clear idea about these taxes.

Thanks.