There will be no increase in rates for essential utilities including water, electricity and telecommunication under the newly amended Value Added Tax (VAT) system with this year’s budget, Finance Minister Ravi Karunanayake says.

He added that VAT on wholesale and retail trade has totally been freed from VAT as well.  “VAT on wholesale and retail trade has been reduced from 11 per cent to 0 per cent,” he added. 

 
Minister Karunanayake also said that it was the ideals of the President Maithripala Sirisena and the Prime Minister Ranil Wickremasinghe that were converted into practice through the budget- 2016.

Minister Ravi Karunanayake speaking at a post budget interactive session said that this year’s budget is an unprecedented move to change the landscape of the country  through increased public investment and the public private partnership in many sectors of the economy.

The minister clarifying a statement that was in the budget proposal said that there were no fee involved for the introduction of Residence Visa to foreign investors. He said that those foreign investors who bring an investment of USD 250,000 will be given residence visa for a period of three years and those bring USD 5 million would be given permanent residence visa with the approval of the Cabinet of Ministers.

When asked about the government restricting the import of electric vehicles in the absence of a proper public transport system the minister defending the government’s move said that the budget has allocated initially Rs 1000 milliion under a proposed “Park and Ride” to facilitate the commuters in the country in terms of comfort and cost. Under this the minister said that railway and bus transport in selected towns such as Jaela, Avissawella, Panadura, Kadawatha and Piliyandala will be improved.