LNP - Exporters seek tax relief and cost reductions in 2025 Budget

The National Chamber of Exporters (NCE) is calling for relief measures in the upcoming 2025 Budget to help businesses recover from years of economic challenges.  President of the National Chamber of Exporters Jayantha Karunaratne emphasized the need for tax reductions and cost-cutting initiatives to enhance Sri Lanka’s global competitiveness. “We have faced numerous difficulties over the last four to five years, and this year, we hope for relief that will enable us to operate more efficiently,” Karunaratne stated.  “A key expectation from the budget is a reduction in the 30% corporate tax, particularly for exporters, as Sri Lanka’s tax rates are significantly higher than those of competitor nations. With higher taxes, we struggle to compete, reinvest, and expand into new projects and infrastructure,” he added. Karunaratne also highlighted concerns over high production costs, which hinder profitability and growth. “We look forward to measures that will ease production expenses and encourage exporters to contribute more to national income,” he said.  Additionally, he noted that while not directly linked to the budget, the potential removal of the SVAT could impact cash flow, further complicating business operations. The National Chamber of Exporters urges the government to implement policies that support exporters, ensuring sustained economic growth and increased foreign revenue. “By incentivizing exports, the country will benefit from higher income and improved tax collection,” Karunaratne concluded. The Appropriation Bill 2025 (Budget Speech) is expected to be presented to the Parliament on 17 February 2025, with the Budget debate to be held for 26 days from February 18 to March 21, 2025.