Gotabaya’s tax reliefs can boost country’s economic growth rate - trade unions’ federation

The Federation of Trade Unions of Sri Lanka says several tax reliefs proposed by the SLPP’s presidential candidate Gotabaya Rajapaksa can bring forth benefits to the trading community as well as the general public.

Issuing a media release yesterday (08), the Federation said these tax reliefs can also result in the country’s economic promotion.

Gotabaya Rajapaksa, launching his election manifesto recently, pledged to reduce the Value Added Tax (VAT) to 8%, business taxes, Pay As You Earn (PAYE) tax and interest rates. Referring to the aforesaid tax reliefs, the Federation pointed out that this can lead to price reductions, strengthened consumer buying power, reduced debt burden and promotion of local products.

The release further stated SLPP presidential front-runner’s tax reliefs may cause a temporary decrease in government’s tax revenues, however, it can help boost the country’s economic growth rate, which currently suffers a slide, within a short period of time and to increase the government revenue.