Thursday, November 6, 2008


Budget proposals For 2009

Milk powder, sugar import tax to be increased

Import tax on milk powder to be increased from Rs.5 to Rs.15 per Kilogram and import tax on sugar to be increased from 14% to 16%, President Mahinda Rajapaksha reveals in the budget speech today .

Increase of import duty on wheat grain from 6% to 10% and a 5% Cess will be imposed for wheat flour.
Cess taxes to be increased
To increase cess taxes on a score of imported items such as confectioneries, automobile spare parts, ceramic ware, leather products, garments and ayurvedic products
Rs. 600 million for
Mihin Lanka air service.

to spend Rs.600 million to resuscitate the Mihin Lanka air service by acquiring new aircraft.

VAT to be reduced from 15% to 12%
VAT to be reduced from the present 15% to 12%, VAT on liquor to remain at 20%,

Copyrights Act to be amended

the Copyrights Act to be amended so that lyricists, music directors and singers will get a financial incentive whenever their creations are aired over radio

10% mobile phone tax to be extended to landlines
10 % tax on mobile phones to be extended to landlines as well

Discount on electricity and water consumption

A 30% discount on electricity for consumers who consume below 90 units and a 20% discount on water for those who consume below 10 units

Pensioners’ CoL allowance to be increased
Pensioners’ cost of living allowance to be increased by Rs. 560

CoL allowance for Public servants to be increased
Cost of living allowance of Government servants to be increased by Rs. 1000

Diesel, Petrol and Kerosene prices to be reduced

Diesel per litre price to be reduced by Rs.30, Kerosene by 20 and Petrol by Rs.15, under the new budget.