“Tax increase deterrent to potential export investments”

The increase of taxes on exports to 30% from the present 15% could have a negative impact on exports and will also be a deterrent for any investors who are contemplating on investing in export ventures, Serendib Horticulture Chairman Dilip de Silva (pictured) said.

“We urge the President to bring down the tax on exports to 15% as before for a period of three years until such time we try to attract investors into the sector,” de Silva told Daily News Business. Speaking on recent budget proposals and its impact on the agriculture sector, De Silva said it is an accepted fact that the budget was presented by the President when the country is in a very precarious situation economically.

“The President has presented a budget mainly to increase the government revenue. Though some of the proposals are progressive there are some that could be counterproductive.”

He said further that the budget proposal to use unutilized land for export ventures is a good move. But this needs to be done without too much red tape. Acquiring land for export ventures has always been an issue since there are many government agencies involved in releasing land. This needs to be streamlined.”

He also urged the President to give equal status to all agriculture exports, not only Cinnamon.

Since it is agriculture related sectors such as floriculture, fruit and vegetable, spices which could boost up the foreign exchange to the country whilst creating employment in rural Sri Lanka.