Massive increase in tax revenues from budget 2016

5 November 2015 02:48 am - 1 - {{hitsCtrl.values.hits}}

A A A

Finance Minister warns tax defaulters

Just less than three weeks to a much-expected budget, Finance Minister Ravi Karunanayake yesterday said the country’s fiscal front is at a crucial point and hinted a massive increase in tax revenue to the government in the forthcoming budget.

“We do have a serious situation,” admitted Karunanayake.

According to Karunanayake, his ministry officials along with the Inland Revenue Department staff are working tirelessly to prepare the forthcoming budget.
Karunanayake stressed the need to increase the tax revenues by as much as 60 percent from the current levels. Hence, tax revenue, which has come down to mere 10.85 percent of gross domestic product (GDP), is expected to go up to 15-16 percent of the GDP from the 2016 budget.

“I want to ensure, we will collect a minimum of 14-15 percent (tax revenue of GDP),” Karunanayake confided delivering the keynote address at a seminar on taxation conducted by the Sri Lanka Branch of International Fiscal Association. Sri Lanka’s curious case of an expanding economy with falling tax revenues as a percentage of GDP has been an economic paradox. Sri Lanka has the lowest tax revenue as a percentage of GDP in the South Asian region and this has been a top fiscal reform continuously called for by the International Monetary Fund. According to the Finance Minister, Sri Lanka’s tax revenue as a percentage of GDP was 17.6 percent. However, Karunanayake said the burden will not be passed on to the public; instead they will go hard on the tax defaulters. “Today the problem is not that the people are not paying. People who can afford to pay are the ones who are not paying. And I give a wake-up call for them,” the irate Finance Minister told the packed house.

Sri Lanka now operates with over 30 taxes making the tax structure, administration and compliance extremely difficult but a much simplified tax framework is expected to be introduced in the budget 2016.

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 - 1

Prem Nath Thursday, 05 November 2015 11:04 AM

Well no doubt the people who voted these guys into power,will now realize their tremendous error in trusting the UNP and Swan product.

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.

Massive increase in tax revenues from budget 2016

Comments - 1

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

Gota fires back at Cardinal, rebuts allegations

Astrologer Chandrasiri Bandara passess away

Racing event tragedy leaves seven dead including eight-year-old child

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

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

Sri Lanka weighs Open Skies amidst plans for national carrier privatization

MIRROR CRICKET

Sahan Arachchige to lead Sri Lanka ‘A’

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

TODAY'S HEADLINES

Sri Lanka to establish new energy sector regulator

Cabinet nod to transfer China-built Mattala airport’s management to Indian, Russian joint venture

Sajith never attends dinners hosted by Ranil Wickremesinghe

One soldier dead, nine injured in road crash

Sahan Arachchige to lead Sri Lanka ‘A’

Dates confirmed for 78th Bradby Shield

SLAS appoints independent committee for investigation

Pakistan lose key players for last two T20Is against New Zealand