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Thursday Dec 12, 2024
Wednesday, 17 October 2012 00:28 - - {{hitsCtrl.values.hits}}
By Uditha Jayasinghe
A group of 14 top executives in leading sectors yesterday presented their main industry issues and proposals to Treasury Secretary Dr. P.B. Jayasundera at a special forum titled ‘Speak Up Before 2013 Budget,’ organised jointly by the Daily FT and MBA Alumni Association University of Colombo.
Each of the industry leaders was given three to five minutes to present their top three concerns or requests to Dr. Jayasundera, after which there was a feedback session given by him at the forum over breakfast held at host hotel Cinnamon Grand. Strategic partner of the forum was the Standard Chartered Bank.
The main call was for Government concessions to be provided for human resource training, with agriculture, construction, automotive, plantations, tourism, logistics, and IT all mentioning for the need for more professionalism within their sectors.
Research and development was also interlinked to the requests on many points with a strong case being made by the agriculture sector to expand State concessions to the private sector as well. Construction and lubricants highlighted the need to enact legislation for industry regulation that has been in the pipeline for many years, while banking and insurance called for adjustments in taxation in accordance with Government regulations.
Expansion of financial markets and increased free float of listed companies was also urged, with a variety of suggestions succinctly presented by the business community.
“Growth needs to be maintained and it cannot be done by the Government alone,” Treasury Secretary Jayasundera said in reply, adding that the private sector must move away from concessions.
“My advice is that tax regime we got in 2011 must be protected and promoted. If for any reason we keep asking for concessions, it can lead to erosion in the tax base, resulting in tax increases again. It is not perfect and we need to get IT platforms together to streamline exports and within the next two years we will get a fully-automated system. Income tax people need a change in attitude so that their interpretation is more convenient.”
He stressed that the Government’s task was building an enabling environment for business and despite many criticisms, this had been largely accomplished.
“You should not do business if you can’t comply with taxes,” he said, insisting that current tax levels are affordable. “Those who can afford must pay. We must slowly but steadily move away from concessions and expand the tax base. Despite the criticism levelled at the Government, we have done our best to provide the needs to the people. My wish is that someday a forum of this nature can debate a fiscal surplus. A country needs a goal and those that have seen such a future have reached that level of stability.”
The Government would focus on continued infrastructure development and policy alignment to promote a good business environment, he assured during the seminar.
