📈 Budget 2027: Call to Maintain Economic Policy Consistency

• Revenue Performance: The government achieved over 60% of its H1 2026 revenue target, remaining on course to hit the full-year estimate of Rs. 5.3 trillion. State revenue saw a strong 27% YoY increase due to improved tax administration. • Key Revenue Drivers: • Automotive: Vehicle imports yielded over Rs. 512 billion in H1 revenue. A recent import slowdown and 50% Customs Duty surcharge are deemed manageable short-term controls against rapid LC surges. • Sin Taxes: Excise taxes on tobacco and alcohol generated higher revenue compared to 2025. • Tax & Consumer Policy: Retaining import duties on essential items like dhal and onions is recommended to maintain price stability. Stronger Consumer Affairs Authority enforcement remains vital. • Relief & Services: While PAYE tax cuts are under consideration, improving public services (such as the MetroBus initiative) is highlighted as key to increasing tax yield value for citizens. • Competitiveness: High capital and energy costs remain key bottlenecks to national competitiveness, requiring strategic policy reforms to target high-value niche export markets.