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Sri Lanka parliament approves borrowing increase, taxes

sri lankan-parliament

Oct 21, 2015 (LBO) – Sri Lanka’s parliament has approved raising the ceiling on treasury bill borrowing by 400 billion rupees to finance a higher budget deficit.
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The parliament also passed a series income, value added, nation building, gaming and broadcast taxes proposed in the last budget to raise government revenue by around 60 billion rupees.
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The tax on telecoms was not taken up in the parliament.
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The government’s earlier attempts to raise the T-bill limit and controversial taxes this year failed due to a lack of a parliamentary majority. Finance Minister Ravi Karunanayake said this week that the budget deficit could rise to 6.
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8 percent of GDP from 5.5 to 6.0 percent estimated by the IMF.




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Commenting on the taxes opposition MP Tharaka Balasuriya said: "A retrospective tax has no moral authority. It takes away a fundamental requirement in law, predictability.




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From an investor perspective, it’s a nightmare.
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" "This Country, having endured a 30 year brutal war, had not imposed retrospective or a ‘Super gains’ tax during the course of the war, but the new government imposes such a law five years later, after the completion of the war, during a period of relative economic prosperity, in its maiden interim budget."
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