Update: Government worker’s salary increase by Rs. 10,000;Kerosene, LP gas and cement prices also dropped

Thursday, 29 January 2015 - 15:07

The new government has decided to increase the public worker’s salary by 10 thousand rupees and drop prices of 10 essential goods.

Prices of cement, kerosene and LP gas have also been reduced.

While presenting the interim budget to the parliament, Finance Minister Ravi Karunanayake stated that Samurdhi allowance has been doubled, and requested the private sector to increase its worker’s salary by at least Rs. 2500.

In the interim budget, 15% interest has been given to the fixed deposits of Senior Citizens while Mahapola scholarship allowance has been increased up to Rs. 5000.

The marriage registration fee has been dropped from Rs. 5000 to Rs. 1000 while Rs. 250 and Rs. 200 have been granted to pre-school teachers and Sunday school teachers respectively.

The Finance Minister also informed parliament that prices of 13 essential food items including sugar, powdered milk, wheat flour, bread, green grams, sprats, canned fish, coriander and dry chilies have been reduced.

The Finance Minister further said that the entrepreneurs who would invest in the provinces be given a tax concession of 50% on their profit. He also said that steps would be taken to retrieve the GSP plus and to lift the EU ban on fisheries products.

The new government has also increased the decentralized budget for minister from Rs. 5 million to Rs. 10 million while the budgetary allocations for education to be increased to 6%.

Meanwhile Sri Lankan Airline is to be merged with Mihin Air and to cut the estimated expenditure for the President Office 2015 from Rs. 95.93 billion to Rs. 2.56 billion.

The government has decided to cancel Deyata Kirula exhibition but to allocate some money to carry on the proposed development in the area.

At the same time, the Finance Minister has proposed to open a bank account for each citizen in the future.

He said that the government has planned to charge a tax of Rs. 1 billion from Casino permit holders by next April.

In addition, broadcast channel established to solely telecast sports would be charged a one-time tax of Rs. 1 billion and other satellite services with over 50,000 subscribers would also be charged a tax of Rs. 250 million.

In addition, kerosene price has been dropped by Rs. 6 while the price of a cylinder of LP gas by Rs. 300, bag of cement by 90 rupees, bus fare by 10%, and school van fee by 5% would also be reduced.

The current 25% reload tax would have to be borne by respective phone companies hereafter and interest charges for pawned gold jewelry up to the value of 1 million rupees would also be waived.

The farmer loans up to Rs. 100,000 would be cut off by half, where NRFC accounts would be given a 15% interest under the new budget proposals.

Fixed prices of Rs. 50 for paddy, Rs. 80 for tea, Rs. 350 for rubber and Rs. 70 for fresh milk have also been proposed.

In addition, the government has decided to continue the fertilizer allowance under better standards.

A special insurance scheme has been introduced for the fishermen while the tax on small vehicles has been reduced by 15%.

Finance minister Ravi Karunanayake said that the tax system would be simplified and the Paye Tax limit has been increased from Rs. 600,000 to Rs. 750,000.

The minister also introduced 3 new taxes namely Mansion tax, Emigration tax and Super gain tax in order to swell the government coffers.


Interim Budget 2015

01)  Reading of the 2015 interim reform budget by Finance Minister Ravi Karunanayake, starts.

02)  Loss affected by Hedging Transaction is more than 60 million USD

03)  Actual figure of Debt Per capita is Rs. 427,220, and the actual figure of National Debts Hidden by previous regime currently stands at Rs. 8.81 Trillion.

04)  Expenditures of Presidential Secretariat - 2014 Rs. 10, 4970 Million and estimated cost for 2015 was Rs. 95,930 million but it has been lowered to Rs. 2560 million.

05)  Emoluments of state sector servants improved by Rs. 10,000 - Rs. 5000 will be given in February and remaining Rs. 5000 in June.

06)  All loans taken during the previous regime has to be paid by new government to which includes 15 million USD loan taken for security purposes.

07)  Rs. 2.5 billion saved by downsize on the number of Ministers

08)  Request made for private sector employers to increase the salaries of private sector employees by Rs. 2500

09)  Throughout past seven years 5000 million USD due to losing GSP+

10)  Increase of Rs. 1000 pensions with effect from April

11)  15% interest rate to be given to Senior citizens with Rs. 1 million in their bank accounts.

12)  An expectant mothers to be paid an allowance of Rs. 20,000.

13)  50% of the loan borrowed by farmers to be waived off

14)  To advance agricultural sector, hand tractors will be given away at discounted rates.

15)  Fresh milk price buying price to be increased from Rs. 60 to Rs 70.

16)  Budget for ministers will upturn by Rs. 5 - 10 million

17)  An amount of Rs. 2000 billion to be allocated to the fund kept for kidney patients

18)  For education sector will be increased by 6% off the GDP systematically

19)  Kerosene reduced by another Rs. 6 per liter

20)  Electricity consumers will be encouraged to use solar power to save the irrelevant expenditures.

21)  School van/bus fees lowered by 5%

22)  13 Essential goods price drop by removal of taxes - with effect from today midnight

Sugar: Rs. 10 reduction  - tax reduced from Rs. 28 up to Rs. 10
Milk powder 400g packet will be Rs. 325 (maximum retail price) - reduction of Rs. 61
Sustagen milk powder to be reduced by Rs. 100 (400g)
Flour prices reduced by Rs. 12.50 per kilo
Bread - reduced by Rs. 6
Green grams -  reduction by Rs. 40 per kilo
Sprats: Reduction of Rs. 15
Canned fish - Reduced by Rs. 60
Coriander - Reduced by Rs. 60 per kilo
Maldive fish - taxes reduced by Rs. 200
Chilli powder - Reduced by Rs. 25 (powdered)

23) Gold jewelry pawned to banks and pawning centers- that don't exceed Rs. 200,000, the interest will be waived off.

24) 12.5kg gas cylinder price reduced up by Rs. 300.

25) Mansion tax - Rs. 1 million per year will be charged for houses of which the value is estimated at Rs. 100 million. Vehicle taxes reduced for vehicles with engines below 1000 CC by 15%.

26) Cement prices will be brought up to Rs. 99

27) Vehicle assembling plants have neglected their income tax payments during the previous regime. Rs. 12, 0000 million revenue expected through swift payments.

28) Casino owners to pay Rs: 1000 million as a tax - first payment to be made prior to April.

29) The liquor shops per owner to be reduced up to three and the Liquor permit to be amplified by two folds.

30) Marriage registration fee to be reduced from Rs. 5000 to Rs. 1000.

31) Telecommunication Service Providers to pay one-time tax of Rs. 250 million.

32) Mobile phone operators to pay one-time tax of Rs. 250 million

33) Rs. 1000 million tax imposed on TV stations dedicated to sports

34) The government has cancelled the 25% tax paid by customers when reloading mobiles.

35) Rs. 1.5 million license fee will be charged from any vehicle importers.

36) Special privileges for disabled soldiers – under Viru Diriya to be introduced in state banks and the maximum borrowing Rs. 500,000.

37) Mahapola scholarship fee to be increased by Rs. 5000

38) A monthly sum of Rs. 200 to be paid for Sunday school teachers

39) Sri Lankan and Mihin Airlines have incurred heavy losses during last 5 years.

40) Sri Lankan Airlines and Mihin Lanka to be merged to reduce the future losses

41) Every individual can open a bank account with Rs. 250.

42) Public transportation costs to be reduced by 50% for senior citizens in the country.

43) Special committee to be set up to solve the issues caused by irregular finance bodies within a very short time period.

44) Prohibition imposed on Ministries and every state institutions from publishing promotional newspaper advertisements.

45) Interim reform Budget 2015 reading concluded.