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5 percent increase as a non pensionable allowance to all public servants and security forces
Propose to increase the Cost-of- Living allowance by Rs. 600 per month from January 2011 to all public servants and security forces in non staff categories.
propose to increase CoL allowance to staff categories from July 2011.
propose to implement the applicable salaries to teachers in terms of the new Service Minute with effect from January 2011for all pensioners, I propose to increase their Cost-of-Living allowance by Rs.250 per month from January 2011.propose an increase of Rs. 750 per month to those who retired prior to 2003Rs. 250 for those who retired between 2003 and 2006. These will benefit nearly 450,000 pensioners and 1.3 million public servants. propose to increase the specific professional allowances to university academic staff, medical professionals and other specific professionals based on their professional and research specialties, to 25 percent of their salaries.propose to extend concessionary duty to import motor vehicles for professionaland managerial categories of public servants working in the Government and publicenterprises.Propose to recruit 10,000 graduates to the all island services in the fields of engineering, administration, planning, teaching, technical services, agricultural extension and other skills Further 1,500 graduates will be recruited as Management Trainees to State Banks and other financial institutionsCustom duty structure simplified as a four band rate structure.propose to appoint an Independent Revenue Commission (IRC) pertaining to Customs, Excise and Inland Revenue to hear disputed tax issues for determination within 90 days.Legislation requiring labeling in all three languages will be introduced to safeguard thenational interest.Idle funds other than 6 months working capital requirements in the hands of government agencies including promotional and regulatory bodies will be transferred to the consolidated Fund on or before 31st January 2011.All tax refunds will be made by account payee cheques only.propose to exempt Ceylon Electricity Board, Ceylon Petroleum Corporation, National Water Supply and Drainage Board and Sri Lanka Ports Authority from income taxes for a period of 5 yearspropose to exempt SriLankan and Mihin Lanka from all taxes for a period of 10 years to strengthen the two enterprises.propose to reduce the Nation Building Tax from 3 percent to 2 percent.propose to remove the Provincial Turnover Taxpropose to make a revision to the electricity tariff structure from January 2011.propose to reduce tariff by 25 percent to religious places, government hospitals,schools, vocational training institutions and universities. The present tariff rate willcontinue for small businesses and SMEs.propose to set up a National Sports Development Fund as a public-private partnership project to promote all infrastructure facilities and attract international sports events.propose to issue food security cards for low income households. This will guarantee a minimum quantity of rice, flour, sugar, dhal, dry fish and milk powder at affordable prices to be implemented through Samurdhi programpropose to exempt machinery and equipment imported to processes grain mixed bakery products from Custom duties and VAT.propose to exempt the rice milling and bakery industry activities with a turnover below Rs. 100 million per annum from the Economic Service Chargepropose to launch a National Food Production Drive through the Department of Agriculture and Samurdhi to organize one million home gardens to develop a “backyardeconomy”.National Secretariat for “Gama Neguma” will be established to bring all relevant agencies in the Economic Development Ministry under one umbrella organizationpropose to implement a daily credit scheme for self employment activities with theassistance of the People’s Bank A Secretariat for Self Employment will be set up in order to facilitate urban self employment enterprises.propose to enhance the related budgetary allocation by Rs. 1,000 million to increase the monthly allowance granted to elderly, the handicapped, the victims of terrorism and the vulnerable in our society.propose to increase the monthly allowance for disabled children, breadwinners and elderly in Samurdhi families to reduce their grief.propose a fresh allocation of Rs.50 million to provide computer accessories, cameras and other equipments to media personnel to develop their creative skills and quality standards.propose to set up a Performing Arts Trust to manage all the new facilities.propose to allocate Rs 200 million from the budget to commence phase 2of the National Tele-Cinema Park at Ranminithenna for the artist todevelop their creations propose to increase the farm gate price for liquid milk to Rs. 50 per liter. Special credit facilities at 8 percent interest will be extended to promote small scale livestock activitiesto encourage value added exports, I propose to increase the CESS on the export of raw rubber from Rs. 4 per kg to Rs. 8 per kgpropose to increase the export CESS on bulk tea to Rs. 10 per kg.In all urban development planning, dedicated common facilities will bereserved for three wheeler and taxi parking and self employment opportunities.propose to set up a Citizens’ Pension and Insurance Fund (CPIF) for every citizen over 65 year of age as we need to prepare for a larger elderly population by 2020.propose to set up an Overseas Employees’ Pension Fund (OEPF) to help nearly 3 million Sri Lankans engaged in overseas employmentpropose to set up a Employees’ Pension Fund to provide post retirement pension benefits to employees in the private and corporate sectorspropose to increase the tax free threshold on interest income from Rs. 300,000 to Rs. 500,000.propose to exempt any employee earning Rs.600,000 per year (Rs.50,000 per month) from PAYE taxApplicable tax rates for employees earning over Rs. 600,000 will be reduced subject to a maximum rate of 24 percent.propose to apply the new PAYE system to the public sector as well.propose to reduce the current tax rates on personal income ranging from 5 to 35 percent to 4 to 24 percent. propose to increase the tax free threshold income from Rs. 300,000 to Rs. 500,000 and the tax slabs from Rs.400,000 to Rs 500,000.All government agencies will adopt an electronic approval procedure in 2011. The E-governance project will enable all regulatory agencies to link with each other to share informationpropose to cancel forthwith, all BOI approvals granted before 30th June 2010, if such investment has not commenced or has remained closed as of today.propose to exempt high tech medical and laboratory equipment from import duties and VAT to promote investments in health servicespropose to grant a further Rs. 600 million to transform Peradeniya, Moratuwa,Colombo, Sri Jayawardanapura, Kelaniya and Ruhuna universities to become worldclass universities in their chosen fields.propose to develop 1,000 well equipped secondary schools throughout the island over a period of 5 yearspropose to allocate Rs 1,000 million to set up an Innovation and Technology Development Fund to finance high quality research and innovations.propose to increase tax on profits of businesses engaged in the manufacture and distribution of liquor, cigarettes, and casinos from 35 percent to 40 percent.Government will commit its own resources through the Ministry of Youth Affairs and Skills Development to train 300,000 youths in a wide range of new skillspropose to exempt SMEs from the Economic Service Charge from 1st January 2011. and also propose to offer a concessionary income tax rate of 10 percent for SMEs.machinery and equipment to manufacture textile, leather, footwear and bags will be exempted from import duties and VAT.propose to introduce a new legislation within first 100 days of 2011, towards countering anti competitive practices in shipping and trade.propose to combine all taxes and impose a Telecommunications Levy of 20 percentpropose a 2 percent licence fee on gross revenue. As the Telecom industry depends heavily on high-tech equipment and machinery, it is proposed to exempt those items from duties and VAT at the point of Customs. propose a levy of Rs. 2 per minute for outgoing International calls. propose to reduce the minimum floor rate for local calls from Rs. 2 per minute to Rs. 1.50 per minute from July 2011 for the benefit of consumers.Telecommunication Regulatory Commission has been requested to regulate the broadband costs in order to increase broadband penetration.propose to establish a knowledge city in each province linked touniversity townships.Exchange control restrictions on foreigners and foreign funds investing in unit trusts will also be exemptedpropose to reduce VAT on financial services from 20 percent to 12 percent. Further, I propose to reduce tax on profits of banking and financial institutions, from 35 percent to 28 percent.propose to reduce duties and taxes on passenger transportation vehicles by 25 percent. propose to exempt the importation of electric and highbred vehicles from Excise Tax and VAT in order to promote environmental friendly tourism.propose to impose a levy of US$ 20 per bed on all five star hotels which charge a room rate that is less than US$ 125 per night from January 2011propose to reduce duties and taxes on machinery, equipment and raw material toenable our enterprises to have affordable access to world class technology. propose to lower income tax from 15 percent to 10 percent for industries withdomestic value addition in excess of 65 percent and Sri Lankan brand names withpatent rights reserved in Sri Lankaincome tax of all export companies will be reduced from 15 percent to 12 percent to encourage general exports. propose to reduce income tax on profits from 35 percent to 28 percent. contributory medical scheme introduced to provide relief to publicservants will be extended benefits to pensioners as well. Therefore, a National Insurance Trust Fund is proposed to upgrade and maintain selected wards in national and district hospitals, dedicated for public servants and pensioners.Such hospitals can recover the expenses of medicine and surgeries under this scheme.this proposal to provide considerable relief to nearly 450,000 pensioners and 1.3 million public servants.