Electricity, telephone charges may increase

23 November 2015 04:07 am - 30     - {{hitsCtrl.values.hits}}

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The Inland Revenue Department has indicated a likely increase in charges for electricity, telephone calls and hotel services, among others, with the increase in VAT proposed in Budget 2016.

The existing VAT rate of 11% has been increased to 12.5% in the 2016 Budget, resulting in the enhanced charges for services, a source said.

In addition, bus fares and insurance and bank service charges are also expected to increase with the proposed amendment to VAT.

However the VAT on manufactured goods has been reduced from 11% to 8%. Accordingly, a reduction in the prices of these items is expected.

Essential items will continue to be exempt from VAT.

The Nation Building Tax has been increased from 2% to 4%.

The expected tax revenue for year 2015 is Rs. 504 billion. The expected tax revenue for 2016 is Rs.800 billion. (Ranjan Kasthuri and Jayantha Samarakoon)

  Comments - 30

  • Prem Nath Monday, 23 November 2015 03:48 PM

    Electricity is not a luxury in this 21st century.This government really hits the middle class where it hurts.When the previous government raised some prices,you UNP guys shouted and abused MR.Now what the hell are you guys doing?

    Prem Nath Tuesday, 24 November 2015 09:05 PM

    RK rebuked the private sector recently and had also said that,private sector MUST give bonuses to its workers.(Suppose even when at a loss). Now the losses will only increase with the increase in utility. Electricity is the main driving factor for any manufacture and telephone is high priority for communication with the outside world for exporters. Think where these haphazard decisions will take the country in the near future?

    Perera Tuesday, 24 November 2015 01:42 AM

    Every drop counts. Cut the jumbo cabinet down.

    Channa Monday, 23 November 2015 04:53 PM

    Enjoy Yahapalanaya my friends, this is for what you have voted , worse is yet to come

    Sakalabujan Monday, 23 November 2015 05:03 PM

    People may test miracle of Police Junta in coming days. We are sorry that Rev. Sobithavpassed a way before this drama shows

    Fasia Tuesday, 24 November 2015 06:51 AM

    Although the taxes are still lower than MR era

    kapu Monday, 23 November 2015 05:38 PM

    Have a little pity on Yahapala friends.

    Farzaan Jabir Monday, 23 November 2015 05:55 PM

    Bad to Worst...

    ANTON Monday, 23 November 2015 11:26 AM

    YEAH .... WE CAN JUST IMAGINE WHEN WE SEE THE SIZE OF THE CABINET.

    banda Tuesday, 24 November 2015 08:09 AM

    Existing VAT for Electricity = 0%. Will the bill be up by 12.5%??

    Horri Jimonis Monday, 23 November 2015 05:57 PM

    Too much burden to the poor masses, this is UN-bearable. The FM should reconsider this move.

    Kiris Baba Amaray Monday, 23 November 2015 05:59 PM

    My God this budget is Not Good for a common man. May be for this reason fmr. President ran out in a hurry !!!

    Bubble Banda Monday, 23 November 2015 06:05 PM

    Uncle Ravi, there is nothing in this budget other than increasing the taxes, what is this?

    Desmond Jeromme Monday, 23 November 2015 06:06 PM

    Hon. Finance Manager we all feel that increasing electricity, water

    Kadupol Jothywansa Monday, 23 November 2015 06:08 PM

    We did not vote to UNP for this. Too much.... burden on the poor masses. Its not a good sign.

    Desmond Jeromme Monday, 23 November 2015 06:10 PM

    Please draw a 2nd Budget... with amendments Ravi.

    Premalal Monday, 23 November 2015 12:04 PM

    We already have one of the highest if not the highest industrial electricity tariffs in the world. Further increases would wipe out industry especially the export industry which has to compete globally.

    sacre blieu Tuesday, 24 November 2015 09:00 AM

    The taxes and charges piled up in the utility bills, is to a greater extent unjustified, and on the telecom charges there should be a reduction of a significant amount. This has been done mainly to exploit the high demand and not for the purpose of improvement, which could be done at a lesser cost. Corruption and wastage is the main cause of detioration and misuse.

    Sans Monday, 23 November 2015 12:25 PM

    This government has entered into danger zone by increasing emission test, valuation test, revenue license charges. Also they cannot force for pension scheme using our EPF contribution. Let that be an option for retirees to choose.

    kan Monday, 23 November 2015 12:50 PM

    Water, Electricity

    lkboy Monday, 23 November 2015 12:51 PM

    Seems mahindas budget was better.

    Sonali Monday, 23 November 2015 12:57 PM

    This is the beginning of the end of this govt. Increasing the price of essentials is not a sign of good governance.

    OMG Monday, 23 November 2015 01:26 PM

    What this budget has done is robbing the hardworking, risk taking, tax paying, job creating entrepreneurs who voted for MS and subsidizing the lazy cry babies, who hold placards and block the roads, and who by the way voted for MR.

    Common Monday, 23 November 2015 02:22 PM

    first make efficient changes in number of parliamentarians and the way of their functions. public are not for well being of them. Government reduces on some goods are there are other goods, which prices has been silently increased to a unacceptable level.

    Sapu Monday, 23 November 2015 02:59 PM

    well in order to give cheaper food the govt should increase taxes on other stuff

    ANTON Monday, 23 November 2015 03:03 PM

    THIS IS NOT DEMOCRACY, BUT TAXCRAZY.

    K. senaratne Monday, 23 November 2015 08:40 PM

    The govt has to increase taxes to lay for loans

    anush Monday, 23 November 2015 03:10 PM

    Not only vehicle permit,but also recently issued circular stating some additional category of gov. officers would entitle vehicle allowance Fuel should be removed, because before this circular an example in one gov. institute only three was entitle but now twenty five and those institutions fully depend on treas fund, how waste of fund, if really worries more vehicle on the road cancel the recently issued circular for Vehicle allowance 55000/= , motive them to use common transport

    wildwine Monday, 23 November 2015 03:20 PM

    You need to understand that any Government can not satisfy all the people all the time. Some will be happy whilst others are not; as long as they make most people happy they will continue to be in power. This is the reality.

    Aquarius Monday, 23 November 2015 03:33 PM

    The budget does not not talk about the white elephant they created with this jumbo parliament which is costing millions - if not billions - of public money annually. People should look at other mega waste outside the budget. Hang party politics and think of the nation and country and do somthing to revise the constitution to trim the Ministarial portfolios. Make the number in proportion to the population of the country. Common sense says no loser should be in parliament but do our decision makers have common sense?


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