• Ministry of Finance cannot grant any tax concessions for local manufacturers at this stage due to the need to meet revenue targets. However, tax concessions might be considered in the mid-term if revenue generation exceeds current forecasts.

Despite continued demands by local manufacturers for tax relief on their inputs and proposals made by the Ministry of Industries, the Ministry of Finance claims it is not possible to grant any tax concessions at this stage due to the need to meet revenue targets. Ministry of Industries Sectoral Development Division Additional Secretary I.C. Pathiraja confirmed that numerous complaints had been received from local manufacturers about the increase in taxes on their inputs, which had severely hampered their competitiveness against cheaper imported alternatives. The Ministry of Agriculture and Plantation Industries had forwarded these requests to the Ministry of Finance, highlighting the adverse effects on local industries.

Treasury Deputy Secretary R.M.P. Rathnayake stated that it was highly unlikely that tax concessions could be granted in the near term due to the need to meet revenue targets, and such a step would require parliamentary approval to amend the relevant act, which was also unlikely. However, Rathnayake indicated that tax concessions for local manufacturers could be considered in the mid-term, provided revenue generation from certain sources exceeded current forecasts. He suggested that the possibility of granting tax relief could be revisited once the envisaged revenue targets are achieved.

No tax relief in the foreseeable future | The Morning