Tax increase necessary to balance BoP: Cabraal

3 April 2012 04:49 pm - 45     - {{hitsCtrl.values.hits}}

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Even though the recent increase in import duty may create some difficulty for importers it is to be seen an essential step to adjust the trade imbalance and prevent a severe balance of payments deficit, Central Bank Governor Ajith Nivard Cabraal said today.

“If the ever widening deficit in the balance of payments continued uncontrolled or without any reduction, the imbalance would have been a bigger risk to the economy,” Mr. Cabraal added.

“The only area where we have some concern is the trade deficit as at the end of May last year. The policy measures we have put in place have shown results and the positive impact has already been seen. We are confident that the results will be seen by the end of 2012,” Mr. Cabraal said. (Sandun A. Jayasekera)


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  Comments - 45

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  • Jawfer Tuesday, 03 April 2012 06:23 PM

    CABRAAL

    At last you agreed deficit of BOP

    dev Tuesday, 03 April 2012 06:57 PM

    Where were u all these time? seems like u are force to comment on tax scenario?

    Sandun Wednesday, 04 April 2012 05:19 AM

    Nice comment, Most of village people were hoodwinked by the government this way. They think highways and other developments done by using high interest borrowings will make them happy, But the real truth is not only them their kids have to pay those loans with interest.

    Jagath Thursday, 05 April 2012 03:59 AM

    MR's and his family expenses should be bear by the inecent tax payers?

    Tax Payer Tuesday, 03 April 2012 06:58 PM

    Hi Governer.. What is your Personal Contribution to the Overall tax. Or Are you taking out from the collected Tax for you Luxury Life. Please answer...

    mohan Tuesday, 03 April 2012 06:33 PM

    your explanation is very well received. Please go to America and fix their econimics problem too.

    ricky Wednesday, 04 April 2012 05:41 AM

    A shame for the profession of which you were a one time respected member!

    Lankafellow2 Wednesday, 04 April 2012 12:07 PM

    NO ! , We have bought a Fleet of cars for the ministers .. One defender in front , One in back , what about the 15 body guards.
    ........ and we pay for all .

    kapa Tuesday, 03 April 2012 06:52 PM

    My grand ma can do better balance of payments deficit than you and PBJ. Ordinery us understand how to balance finance than most of you people in Ministry of Finance. How do you think most of us survice each month with small salaries we earn? We don't go behind banks asking for loans to maintain our life. We cut down on unwanted expenses, try to improve income and look for other options to imrove earnings. This is a basic formula govt should apply to all govt finance policies. How to save when top spends each penny we get out of import revenues.

    bah Wednesday, 04 April 2012 05:48 AM

    The governor when can you own a car, why, as fellow citizen, we can't have one. Some one can own a reasonable car in;
    UK = for 100 pounds ( almost 20,000 rupees)
    India = for 2000 dollars (2.2 Lakh)
    Middle east = for 3 thousand dollar (3.3 lakh)

    Why as Sri Lankan, we are a different creature?

    carl Tuesday, 03 April 2012 07:04 PM

    Cabral, do not feed nonsense to the public, the raise in taxes was witnessed today at the IMF - it was endorsed by the government

    Mervihn Szilva Wednesday, 04 April 2012 06:02 AM

    Sri Lankan public have to pay for the stupidity of the higher ups.

    Lankanfellow Wednesday, 04 April 2012 06:59 AM

    That's bcos, we humble and innocent srilankans sacrifice for buy very very very.. expensive vehicles for our beloved ministers.

    hf Thursday, 05 April 2012 05:30 AM

    it is those who are voted for this government

    ru Thursday, 05 April 2012 06:35 AM

    u kabba, please change your name or give some one with talent your position. you are not matured enough to understand the consequences of this type of radical changes.

    Lanka Wednesday, 04 April 2012 01:23 AM

    Mr Cabral what about Mihin Air that is running in millions losses.

    pissu balla Wednesday, 04 April 2012 01:48 AM

    Hmmm.. This is not a sign of an economy which has 8% growth!

    pissu balla Wednesday, 04 April 2012 01:51 AM

    Very well said. This is a classic example of people handling an economy with out basic knowledge in economic principles.

    kunjan Wednesday, 04 April 2012 04:17 PM

    before War War War expenditure now Coruption Coruption Coruption.

    Shelton Fernando Wednesday, 04 April 2012 04:28 PM

    What is the noice that donkey makes.........?

    Nodrog Thursday, 05 April 2012 06:29 AM

    what taxes do MPs pay? Vehicles are duty free, salaries and perks are tax free, free govt housing, vehicles, staff etc......so are you qualified to talk about taxing?

    Kottu Rotti Wednesday, 04 April 2012 04:52 PM

    AMG, the truth is, this moron must leave this to a capable person to manage. What good has he done so far to this country?

    Nagaragiri Kiththil Wednesday, 04 April 2012 05:25 PM

    He should be given a" Vasthiya"( enema ) clear his brain.

    citizen1 Wednesday, 04 April 2012 02:47 AM

    Oh, so the song has changed a bit?

    Gayanga Wednesday, 04 April 2012 02:50 AM

    coudnt we think of this before ? Where is our fince strategy? we are just doing fire figting?

    Criclover Wednesday, 04 April 2012 02:41 AM

    Another funny explanation.....

    Ashan Wednesday, 04 April 2012 08:41 AM

    Yeah that is why there is something called a budget where there is proper planning and forecasting. You dont make decisions like that over night. At least the people who paid for a vehicle up to the date of change of tax should be exempted from it. Have some heart. 5-6 Lack increase for an already made commitment for a consumer is no joke. Its not all money and numbers. Change the law or tax to balance BOP or reduce vehicles or whatever but do it properly and give some breathing space for people. Not just do it over night in this ad hoc way!

    toosh Wednesday, 04 April 2012 06:05 PM

    I though it is control imports from Inida

    PETE Wednesday, 04 April 2012 02:39 AM

    1). Where are the millions of $$$$$$$$$$ that you said was pouring into the country as a result of the economic progress that was taking place?
    2). Hasn't the blundering you and PBJ done with regards to the fixing of the exchange help widen the balance of payment?
    3). Would this tax increase have been necessary if public money in billions was not wasted in Hambanthota, Commonwealth Games, Govt Group Travels overseas, Govt Luxury Vehicle imports, etc?

    Fusion Wednesday, 04 April 2012 08:51 AM

    sorry ma thama

    joker Wednesday, 04 April 2012 02:39 AM

    we know what ure doing!!!!!!!!!!!!!!!!!!!!!!!!!!!

    PREM Wednesday, 04 April 2012 02:59 AM

    You are a great economicist. Now which corrcte?it was told that the increase isto reduce the no of vehicles imported and to reduce use of fuel.

    willows Wednesday, 04 April 2012 09:31 AM

    Asiyawe Aischarya at it s best.

    perera Wednesday, 04 April 2012 11:58 PM

    no cabraal
    it should read to prop up the muppets that are in parliament
    ok

    Ajith Wednesday, 04 April 2012 04:01 AM

    Well said, reducing our purchase in one way, also tight control on our expenses is the other. Reduce our unwanted expenses. Reduce the cabinet, and increase the efficiency. Reduce all these government sponsored tamashas.. Stop bidding for international sports events, since we surely dont have the right expertise to manage these... Haven't we learnt from our hosting cricket world cup? Dont put the burden only to people, start from the government

    Wicks Wednesday, 04 April 2012 04:04 AM

    Necessary to increase to enjoy government ministers and including Central bank governer?

    Ranjan Thursday, 05 April 2012 12:53 AM

    anna oba PARANA POTHA ...

    Perera Wednesday, 04 April 2012 03:55 AM

    For Kapa, great comment, looks simple

    simple simeon Thursday, 05 April 2012 02:40 AM

    Can't the BoP be balanced by getting rid of these people?.

    Nuzath Anver Tuesday, 03 April 2012 05:52 PM

    Stop giving vehicle permits. Treat all Sri Lankans equal.

    shantha madawela Tuesday, 03 April 2012 06:19 PM

    Minister Bandula may be able to balace this matter, he can balance a three person family, from 7500/= per month, mad talks.....

    shantha madawela Tuesday, 03 April 2012 06:14 PM

    Mad's are talking, dam's are lisening......

    AMG Tuesday, 03 April 2012 06:28 PM

    The truth is you need to balance Expenditure on Commonwealth Games bid. the biggest outrageous wastes of taxpayers’ money in our history!

    Citizen Silva Tuesday, 03 April 2012 06:33 PM

    Well you should have known this before. Besides discouraging imports what are you going to do with the extra money from taxes - build a Disneyland in Hambantota or go on a field trip with the cronies to host the Olympics?

    shantha madawela Tuesday, 03 April 2012 06:39 PM

    Is he mad or as Srllankas we are mad...?


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