Regime change led to improvement in Treasury revenue collection: Ravi K

27 May 2015 06:58 am - 0 - {{hitsCtrl.values.hits}}

A A A

The Treasury has collected higher revenues than projected in the January interim budget, despite the opposition still not passing the one-off taxes in parliament, according to the Finance Minister.

“There is about 6-8 percent more than what was budgeted,” Minister Ravi Karunanayake said.

He noted that the increase was due to proper collection of taxes, especially in the Customs and the Excise Departments.

According to Karunanayake, since the change of regime, the Customs Department has continued to accrue over Rs. 2.5 billion daily, compared to Rs.1 billion in the past.

He added that the Excise Department’s value has increased from just Rs.3 billion in November 2014, to Rs.10 billion in April 2015.

“That only happened after we came, so I’m asking; what happened before that? Why did it suddenly jump up in 2 weeks? That’s the basis of a clean government. There’s no corruption or push from the President or the Prime Minister or the Finance Minister, so the entire benefit comes to the Treasury,” he noted.

Meanwhile, Karunanayake said the taxes proposed in the interim budget have not yet been passed to law.

“A minority government is being held hostage by a majority opposition because they’re jealous that they couldn’t pass these before. So they’re basically protecting the casino owners and the super-rich who took advantage of Mahinda Rajapaksa’s government,” he said.

The one-off taxes include a 25 percent tax on profits for companies that made over Rs.2 billion profits in 2013/14, a Rs.250 million tax on mobile phone operators, and a Rs.1 billion tax each on casino licenses, sports channel operators and companies that utilize Sri Lanka’s allocated satellite positions in orbit, to name a few.

The recurring taxes included the annual Rs.1 million mansion tax, doubling of the betting and gaming levy, Rs.200 million monthly tax on alcohol producers etc.

“I’m waiting to see that (mansion tax), because no sooner that it’s in place, I will be the first to pay that tax, even though I don’t need to pay that,” Karunanayake said.

He exuded optimism though he admitted that the setback has caused concern in the revenue side.

“That won’t deter us from going forward and helping the people. There are 7 more months to go in the year,” he added. Economists have been divided over the interventionary and retrospective taxes, with some saying it disrupts free markets and reduces investor confidence, while others laud them for the opportunity presented to distribute income across the social canvass.
(CW)

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Regime change led to improvement in Treasury revenue collection: Ravi K

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

New Visa procedure implemented

Two racing drivers arrested over Fox Hill tragedy

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

Sri Lankan among NASA’s new crew for next simulated Mars journey

Street food vendor arrested for verbally harassing foreigner

SL on alert on possible genocide allegations by Canada

MIRROR CRICKET

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

TODAY'S HEADLINES

SL took minimal steps to punish officials who committed human rights abuses: US report

Iranian President’s visit Sri Lanka withstands western pressure

25 tons of solid waste disposed along Sri Pada route

Temperature rises to ‘Caution’ level

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident

Indian cricket manager indicted for Legend Cricket League match-fixing allegations