TAXES UNDER THE MICROSCOPE

The attention of corporates pivots from politics to the prevailing tax regime

With the country at a critical juncture, the business community is shifting its focus towards taxes rather than politics, which has been the main concern in the recent past.

In the lead up to the presidential election, political interference was at the forefront; yet in August, high taxes have taken precedence. Forty-three percent of executives cite taxes as their primary concern – a rise from 30 percent in July and the highest it’s been since April.

In the latest LMD-PEPPERCUBE Business Confidence Index (BCI) survey, political interference fell to second place with 42 percent of respondents identifying it as a pressing issue, up from 36 percent in the previous month.

According to the exclusive survey conducted in the first week of August, political instability remained in third place with 29 percent (unchanged from July) citing it as a concern.

Interest rates pushed inflation out of the reckoning to take fourth place with just over a quarter (28%) of the sample population identifying it as a concern. Additionally, the depreciation of the Sri Lankan Rupee entered the top five, ranking fifth with 20 percent of respondents expressing anxiety about its value.

On a national scale, 63 percent of poll participants cite the economy as their main concern, which is no different to July’s outcome.

Unease about the cost of living increased from July (52%) to 61 percent in August and concerns among businesspeople about the political culture grew by 12 percentage points to 54 percent.

The education system, which has been a focal point for a while, remains in fourth place with 19 percent citing it as a worry. And the lack of security ranked fifth with 13 percent expressing concern.

– LMD