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Thu, 24 August 2017 02:36:25
Paradise Isle: A dress-to-kill budget
22 Nov, 2013 10:50:10
By Namal Suvendra
Nov 22, 2013 (LBO) - Sri Lanka has increased import taxes on all food and alcohol, but in a generous gesture allowed completely duty free imports of luxury neck ties and bows so that the new crop of "executives" can dress to kill.
Import cess tax was increased on truffles (HS code 20.03) in order to promote "local value addition," although it is not clear who grows the exotic fungi in Sri Lanka.

Almost all imported food and beverages have been hit by higher taxes in the latest budget which also increased the cost of living allowance of public servants by 1,200 rupees a month.

The budget also proposed "strengthening the application" of Value Added Tax on supermarkets meaning that the government will rake in an additional 15 billion rupees from retail stores from 2014.

The adjustment of taxes on imported food will give the treasury an additional 12.75 billion rupees, according to figures tabled in parliament on Thursday.

However, designer pens such as Mont Blanc Etoile Preciesue Fountain Pen will now be affordable at a tax-free 4,040 U.S. dollars and neckties in the league of Hofmann And Co costing up to 8,450 U.S. dollars will also be tax exempt.

The government has also changed the definition of an executive. Earlier, anyone earning more than 25,000 rupees was considered an “executive,” but the floor has now been raised to 75,000 rupees.

Executive or not, you can get completely duty free frozen bait, fish hooks, rods and reels and fishing tackle (under HS code 0511.91.90,9507.10, 9507.20,9507.30 and 9507.90) if fishing is your hobby or vocation.

Marine propulsion engines too become tax free in a move that would allow the crafty to convert their gasoline cars to run on diesel powered marine engines.

Amphibious vehicles could be the next trendy vehicle to replace the low-ground clearance luxury cars which are quite useless on most Colombo roads that go under water during the monsoon.

Enterprising Sri Lankan businessmen could also use new marine engines to power their converted fishing trawlers to out run the second hand boats that Australia has gifted to the Sri Lankan navy to catch people smuggling craft.

To read more columns by our Paradise Isle columnist click on the links below.

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READER COMMENT(S)
5. Dayan Nov 22
Not holes in some areas and Building Expressways/Roads with Commercial rate Borrowed funds doesn't constitute, building a paradise
4. Shani Nov 22
Last year it was duty-free Lamborghini racing cars.. This time neck ties and luxury pens... What will they think of next year?
3. Aney Namal Nov 22
Journalist has no clue about taxation. Go ask a tax specialist if you need explanation. We don't want opinion pieces from a 2 cent journalist
2. Jack Point Nov 22
Brilliant analysis, one of the best so far.
1. pushkum Nov 22
This is not an objective look even if it was meant to be funny. Childishly looking at picking some kind of holes.... Have you gone on a Sri Lankan road lately ?