Budget has failed to address vital sectors hit by pandemic, say stakeholders

Hoteliers are already burdened with a series of top line taxes and levies, he said. "The top line social security contribution of 2.5 percent is definitely adding to the burden.

The Budget has failed to address pressing issues facing many vital sectors, especially hit by the pandemic, stakeholders have complained.

Recently appointed Hoteliers' Association President M. Shanti Kumar said the industry needs more financial support as it has the potential of generating more income for the country. "Our hotels, guest houses, resorts, restaurants need that extra support as they recover from heavy losses due to the pandemic,” he said.

He said they have met the Tourism Minister, the SLTDA Chairperson and the Central Bank Governor to stress the need for more relief in the form of extending the debt moratorium period, reducing or removing municipality taxes and electricity tariffs.

Hoteliers are already burdened with a series of top line taxes and levies, he said. "The top line social security contribution of 2.5 percent is definitely adding to the burden. We have been without revenues for nearly 18 months and still continue to maintain employees. We need the Government to exempt the sector from the 2.5 percent Social Security tax on the total revenue at least until such time we see tourist arrivals stabilise," he said.

Mr. Shanthi Kumar said they have also requested that the sector be exempted from the one percent municipality tax.

“The electricity tariff rate for the hotel industry is also higher than all the other sectors,” he pointed out.

Owners of school vans and three-wheelers said although the budget had allocated a relief package for them, they questioned whether it would be utilised in a way that would address their pressing issues.

Rs. 600 million has been allocated for the three wheeler sector.

“It is good that the Government gave some thought about the 800,000 three-wheelers operating in the country. But we clearly don't want an amount paid to each one of us. That will come to less than Rs. 1000 for each one of us," All Island Three Wheel Drivers Union president Lalith Dharmasekare said.

He urged the Government to use that allocation to set up a body to regulate and monitor three-wheelers while focusing on the welfare of the drivers. He also said that either a health and life insurance scheme or a pension contribution fund should be set up for the sector.

Pointing out that the Government had made the use of meters mandatory from January 15 next year, especially in the Western Province, he said, “due to the pandemic, some drivers cannot afford to instal a meter. Finance companies and state banks should facilitate purchasing of meters," he added.

The Budget had allocated Rs. 400 million as relief to the school transport sector.

"There are 48,000 school van owners and drivers who had zero income for months. The relief amount is not much even to be distributed. All we have been asking for is the removal of the interest we have to pay to finance companies despite no income," AllIsland School Children Transport Association (AISCTA)'s President Mal Sri de Silva said.

He said finance companies are pressuring van owners despite only a handful of students are using school van service although schools have reopened.

"I have only about five to six students travelling in my vehicle, but monthly a 4.5 percent interest is added to my finance payment. My finance payment for the Rs. 1.5 million bus is now Rs. 2.4 million. I lodged a complaint over the Rs. 900,000 increase," he said, adding that this was a huge burden for school van operators.