BUDGET 2021 HIGHLIGHTS.

BUDGET 2021 HIGHLIGHTS.

• Rs. 18,000 million additional provisions to combat Covid-19.

• Daily wage of estate workers increased to Rs.1,000 from January 2021.

• Business organizations engaged in agriculture, fisheries, livestock farming industries, exempted             from taxes during the next 5 years.

• An uncomplicated online income tax system for all income tax payers.

• Non-residents allowed to purchase super-luxury condominiums using foreign currency.

• Amend EPF Act to expand the retirement age for both men and women up to 60 years.

• New laws against auditors and companies that prepare false tax records and a special Court of                Appeal to hear public complaints pertaining to tax.

• Tax exemption on dividends of foreign companies for three years, if the money is invested in Sri             Lankan sovereign bonds or in the stock market.

• Value Added Taxes kept unchanged at 8% for businesses that record a turnover of more than 25             million a month except for bank, finance and insurance companies.

• A 50% tax exemption for local Companies listed in the Colombo Stock Exchange until December         31, 2021. A 50% income tax exemption to local companies if they register before 31 December             2021 to be listed in the Stock Market.

• Migrant workers to receive Rs. 2 for every dollar remitted, a contributory pension scheme.

• Samurdhi Savings Accounts for all Samurdhi beneficiaries, new loan scheme for Samurdhi                     beneficiaries on 7% interest.

• New laws in relation to data security, cyber security and intellectual property.

• Rs 8 billion for expansion of technology sector.

• Special programme to strengthen public security spending Rs 2,500 million.

• Television sets for rural schools to allow students to watch Guru Gedara educational programmes         (Rs 3,000 million).

• Five technological parks

• 5 year tax relief for private educational institutions.

• Rs. 3,000 million to initiate a scholarship programme to provide a Rs. 4,000 monthly allowance to         students receiving vocational education.

• A new insurance scheme for workers engaged in COVID-19 response.

• Technical college’s annual intake to be increased from 100,000 to 200,000.

• Rs 750 million allocated for housing, health, education and entrepreneurship needs of retired,                 injured or deceased military personnel.

• Train compartments to be manufactured locally.

• Railway network Colombo - Kelani Valley to be expanded with a Rs.1300mn allocation.

• Colombo’s Marine Drive extended to Moratuwa.

• A 300 MW Coal Power Plant and two 600 MW Natural Gas Power Plant to be constructed.

• Repayment of refinancing loan facilities provided by CBSL to Tourism sector extended till 30                September 2021

• Aims to create a sports economy worth USD 1,000 million during the period from 2021-2024.

• Rs. 250 million for the development of underprivileged temples.

• 50,000 houses already underway under UDA. A 25 year loan with interest rate of 6.25% for                     recipients.

• Bilateral agreements to be reviewed, to ensure national security and SL non-aligned stance.

• Import duty on vehicle spare parts reduced, Spare parts imports restrictions to be relaxed.

• Two years leave for state employees seeking overseas employment.

• Rs. 3000 million for solutions on human-elephant conflict

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