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The Western Provincial Council(PC) will decide on Tuesday, March 22, whether to go ahead with the proposed increase in Business Turnover Tax (BTT). "The BTT increase was gazetted but until it is approved by the Council it will not be law.
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The Council is due to meet tomorrow to decide," said W Thilakaratne, Director of Revenue, Western PC.
The remaining six PCs are said to have already approved the tax increase, to allow island wide implementation by April 1, 2005.
The BTT increase, from the current one percent to five percent, will only apply to selected "non essential" items.
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There is no change in the current five percent tax on gem and jewellery but a new five percent tax will hit all gold imports that were previously free from PC taxes.
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BTT on liquor and cigarettes – both imported and locally manufactured – will go up from one percent to five percent.
Imported sanitary wear, ceramic products, glass and all electrical and electronic items will see a BTT increase from one percen