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Experts renew call for tax ombudsman to improve trust in system
By Nuzla Rizkiya
The need for a tax ombudsman in Sri Lanka sparked renewed calls from experts this week, who advocated for the establishment of the position to improve trust, fairness and efficiency placed on the tax system.
With the increased flow of information between the tax administrators and taxpayers, experts opined that the appointment of a tax ombudsman would help the government facilitate the much-needed taxpayer compliance.
Although the idea was suggested in both the 2017 and 2023 budget speeches, they pointed out that the proposal is yet to materialise, as Sri Lanka still lacks a proper legal mechanism to address the taxpayer grievances.
“A tax ombudsman will make sure that the taxpayers will not face any unfair treatment and will also encourage voluntary compliance,” said KPMG Sri Lanka Principal Tax and Regulatory Rifka Ziyad.
She noted that the best way to introduce the measure would be through an Act of Parliament.
“The taxpayers will then have more trust in the system because they would have a person to go to,” Ziyad said addressing a pre-budget webinar organised by KPMG Sri Lanka, this week.
In addition to the appointment of a tax ombudsman, she also recalled the idea to establish a national tax council to ensure that the tax reforms are well-thought-out and consistently applied.
With the government frequently rolling out short-term tax reforms, she stressed that the impact of these policies, both in the short term and long term, should be properly assessed, to support their effectiveness and sustainability.
“A national tax council will facilitate the tax policies based on proper cost-benefit analyses and long-term economic implications. This will help us prevent sudden and frequent changes when the government shifts,” Ziyad said.
Her statements were reiterated by KPMG Tax Principal Suresh Perera, who opined that the government could utilise its digitisation drive to expedite the resolution of tax cases.
As a stepping stone, Perera suggested linking the digital platforms of the three key revenue collection agencies, the Inland Revenue Department, Customs and Excise Department, as it is a move that could yield long-term effects in terms of efficiency.
“Hopefully, with the new outlook of the president, we can look forward to this happening sooner rather than later,” Perera said.
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