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Four large companies given tax exemptions last year: Kabir
By Yohan Perera and Ajith Siriwardana
Colombo, May 20 (Daily Mirror) - Four large scale companies have been given tax concessions last year while total outstanding tax arrears in the 2023 alone has come to a staggering Rs 1.6 trillion, Opposition MP Kabir Hashim told Parliament yesterday.
He said outstanding VAT arrears alone have come to Rs 369 billion.
“Sri Lanka’s real tragedy is the decline of Tax revenue over the years. Sri Lanka maintained a sound tax revenue from the time of Late President J. R. Jayewardene whereas it was 22 percent of GDP at the time. It has declined drastically today. This is the real tragedy of Sri Lanka,” he said.
“The present government pledged to recover outstanding tax arrears but had failed in its part. The government has introduced a draconian piece of legislation in the form of the Inland Revenue Amendment Bill. This legislation could be a sign that the government is going for a philosophical change from the democracy based principles,” the MP said.
This legislation he said makes delay in payment of taxes a criminal offence. “The clause 34 makes the failure to obtain a tax identification number a criminal offence. Even a youth could be sent to jail if he or she fails to obtain a tax identification number as per the Inland Revenue Amendment Bill,” he said.
The MP said the new legislation is being introduced to please the IMF which had wanted the Sri Lankan government to increase its revenue to the fullest through tax increases.
Government MP Lakmali Hemachandra who responded said no one will be pushed to jail for evading paying taxes. “A taxpayer will be given a grace period to pay the outstanding taxes. A tax payer will be given chances and will not be pushed towards jail instantly.
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