Next year’s expected growth rate 5.5%, PM says (Video).
Posted on November 17th, 2020

Courtesy Hiru News

In his capacity as the Finance Minister, Prime Minister Mahinda Rajapaksa presented the Budget report for the year 2021 in Parliament today (17).

This is the 75th budget report of the country and the Prime Minister while presenting the budget report stated that the expected economic growth in 2021 is 5.5%.

Below are the key highlights of the 2021 Budget

Increasing the daily wage of estate workers to Rs. 1,000 from 01 January, 2021.

Introduction of a Special Goods and Services Tax

A three-year tax holiday be granted for gem exports<

A special insurance scheme to be introduced for persons affected by the coronavirus pandemic

Establishment of technology parks in five districts namely Kandy, Kurunegala, Anuradhapura, Batticaloa and Galle

Ban single-use plastic and polythene products from 01 January, 2021

Income tax on revenue from agriculture, fisheries and animal husbandry will be removed for the next 5 years

The company taxation law will be amended from 01 April, 2021

The retirement age of both male and female public sector staff to be raised to 60 years of age

Interest rate on loans given to public servants to purchase houses and properties to be reduced to 7%

Allocating funds under the 2021 budget to resolve the issues concerning highways, electricity, water and human-elephant conflicts in rural areas and for proposals under ‘Gama Samaga Pilisadarak’

Allocating funds under the 2021 budget to provide modern facilities to develop the professional skills of Tri-Forces veterans

50% income tax will be exempted for local Companies that will be listed (new) in the Colombo Stock Exchange until December 31, 2021.

To encourage the permanent housing market, capital gains from income tax to be exempted and the stamp duty to be reduced to 0.75.

Up to Rs. 100,000 will consider as investment deductions to encourage personal savings.

Import duty on motor spare parts to be reduced

The primary phase of tourism, foreign and commercial activities in the Colombo Port City is scheduled to commence in the year 2021.

The Prime Minister stated that he expects to present a new legal framework in favor of the promotion and investment of commercial services in this economic zone to Parliament in January after the budget debate.

Commenting on the ETI and affiliated companies, Prime Minister stated that the report on malpractices of ETI & affiliated companies forwarded to the AG for further legal action.

The debate regarding the second reading of the budget will be held from tomorrow (18) until Saturday (21). The relevant vote will be held on the 21 November at 05:00 p.m.

The Parliamentary Communications Department stated that the Committee Stage of the Budget will be active from 23 November to 10 December and the third reading vote will be held on 10 December.

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