The 2013 Budget. Some Notes And Snark

mahinda-money-front

Mahinda money.


Ah, mainly more taxes and a few less taxes. Mahinda just delivered the budget, in his role as Finance Minister I guess. The family still controls over 50% of government funds, but there’s the parts we’re allowed to know. I’ve highlighted the items that are interesting to me, from the diligent Sunday Times summary. All snarky comments (within brackets) are my own.

  • Economic growth this year expected at 6.8 %
  • Inflation at 8.9% [I always wondered if these could cancel each other out]
  • Green gram, cowpea, ginger and kurrakkan imports to end in 2015 [I don't like green gram, but this may ruin breakfast for many]
  • Rs 500 million to Lak Sathosa [these are the most horrible, depressing grocery stores. Empty and the staff is often asleep]
  • Taxes on imported tinned fish [taxes on tinned fish have been raised so many times, it will soon cost as much as sushi]
  • 12,500 youths to receive total of Rs 100 million to develop 25,000 acres of unused plantation land [each youth gets two acres and Rs. 8000. I find this somewhat dubious]
  • Small business enterprises will be exempt from VAT and Nation Building Tax (NBT) [srsly? great]
  • Ban on sale of lands to foreigners [we are now in a brief window where it's not banned or taxed exorbitantly. So buy now I guess]
  • Rs 1000 million to Land Development and Reclamation Corp. to develop  canals and other infrastructure facilities in and around Colombo [PLEASE]
  • Differently-abled persons will be free of any taxes. [how disabled? I have a peanut allergy]
  • Racing car imports to given tax concessions [I guess Namal put this in]
  • ICTA (state IT agency) allocated Rs 300 million [perhaps they could attract more than 330 Twitter followers]
  • Foreign liquor and imported spirits tax increase  by 25 % [uncool]
  • Rs 100 million allocated to support media involved in tourism coverage

This remains my favorite part:

Note; No revenue proposals were read out by the President or how the government will balance the budget

Good times. If the government can reduce taxes on me that’s nice. I somehow doubt that this is balanced, and in this day and age it seems almost quaint that they’re telling us what’s going on.

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17 Comments »

2012-11-08 17:17:19

RT @indica: The 2013 Budget. Some Notes And Snark: Mainly more taxes and a few less taxes http://t.co/DmS2ZF2u

 
Lutronman
2012-11-08 18:24:03

Can somebody enlighten me to the HS code for Racing Cars? If I am lucky, can import a Subaru Imprezza Sti with 520kw power! DUTY FREE!!!

 
Project Pat
2012-11-08 20:34:05

The growth rates are calculated after taking inflation into account

 
2012-11-08 21:09:39

RT @indica: The 2013 Budget. Some Notes And Snark: Mainly more taxes and a few less taxes http://t.co/DmS2ZF2u

 
2012-11-09 09:44:26

Racing cars are not sports cars, ie you can’t register drive a racing car on public roads.

Realist
2012-11-13 18:30:28

Anyone got any info on how racing cars are defined per the budget? Word on the street is that Lambo’s are considered racing cars by the powers that be…

2012-11-14 10:05:34

I wish that last part were true, but racing cars would be defined as cars built for the purpose of racing, or homologated to the track. There are Lambo racing cars too, but they are homologated models for the GT series.

(Comments wont nest below this level)
 
 
 
Ruwin
2012-11-09 19:04:36

You missed the one that applies to you. 16% income tax for IT Professionals. 16%!!! Normal rate 24%.

 
Lutronman
2012-11-09 21:22:24

Yes David, thank you I know that. But this is Sri lanka! I know thousands of people import car’s on Carnet scheme. But how many get re-exported may be a handful. You & I know what happens to the rest. So what happens, if I import a super car saying it is for motor sports & subsequently using my contacts register it as a road car! May be I am dreaming but it could happen?

 
Lol
2012-11-10 07:56:42

countless number of cars are on the road that are unregistered and running with garage plates. I can see folks importing ferrari’s and like for 15 mil, whic is cheaper than most new mercs

 
2012-11-10 14:05:14

Important point.
1. Lak Sathosa is actually a boon to those who cannot afford breakfast at Commons.

An ad in the Sunday Times state free laptops will be given out to journalists. Not a bad idea. I wonder what they have in mind though.

2012-11-12 16:20:16

Dude, it’s not. The prices aren’t much better than what you get at the corner store and we’re paying taxes to subsidize running the damn thing.

 
 
2012-11-11 09:13:04

Free laptops to journalists is the sort of micromanaging idiocy that the state needs to avoid at all costs, the budget needs to be about broad policy.

Lak Sathosa- The CWE went bust several times over, I don’t think this latest reincarnation can survive either. Prices may be lower but the state needs to tax elsewhere to raise funds to cover losses, a zero sum game, in effect.

tastyjujubes
2012-11-11 20:52:34

Aney why don’t you run for president.

 
 
2012-11-12 17:02:36

No fear.

I don’t qualify; not crooked enough, not thuggish enough.

I’d run with my tail between my legs at the sight of Duminda Silva or Julampitiye Amare.

 
sach
2012-11-15 16:44:18

there is a good review on the budget in Daily mirror.

http://www.dailymirror.lk/opinion/172-opinion/23497-consumption-and-urban-bias-in-the-budget.html

A practical and an intelligent guy, i do read his articles withour missing any.

 
2012-11-16 13:04:28

Thanks for that Sach.

 
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