Fri, 02 Dec 2022 Today's Paper

Economy Decoded! Let’s talk about tax!

19 November 2022 09:57 pm - 6     - {{hitsCtrl.values.hits}}

A A A


By Yasu
-e Karunaratne


The year 2022, has thrown a lot of curve balls at us:  the Economic crisis, increased inflation and cost of living, increased loan interest rates and now increased tax. Or rather, Sri Lanka actually needs this proposed tax policy for the economy to recover

 

Amendments to the Inland Revenue Bill was gazetted on October 11 2022. However, the bill was challenged in the Supreme Court of Sri Lanka before a three-member Supreme Court Bench. The three-member Supreme Court Bench comprised of Justice Buwaneka Aluwihare PC, Justice MaduN.B. Fernando PC and Justice Janak De Silva. The petitioners contended that the proposed bill was too taxing on the public and thus it was inconsistent with the constitutional rights of the people. 
 

However, the three judge bench ruled on the November 16, 2022 that the Inland Revenue (Amendment) Bill was not inconsistent with the constitutionThe petitioners argued that it was prejudicial to charge a high increase in taxes, within an economic crisis and to an unscrupulous government. 
 

According to the bill Income tax rates have increased drastically, where on average it has increased by almost 78% (average considering varying income tax brackets ranging from Rs 200000 taxable income to Rs1.5 million taxable income)Another noticeable feature in the bill is that the tax relief threshold has reduced from Rs3 million to Rs1.2 million.

 

The Income tax rates have increased drastically, where on average it has increased by almost 78%. What does this all mean? Watch our explainer here

 

https://youtu.be/nowy80yDpD0
 

 


Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

  Comments - 6

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka
  • Lanka game of thrones Sunday, 20 November 2022 01:23 AM

    Glad to see the article, but seeing the young people talking about tax being "necessary evil" makes be me wonder if they will more likely stoop to tax evasion, citing it as as personal "necessary evil" to keep more of their incomes to themselves. Hopefully once the next generation of children in the tax funded public education system do more English at school, the English communication skills of next Sri Lankan youth will be much better. Maybe there needs to be more education in schools before O level about taxes, and the benefits to society from them efficient use. While not taught they should then reason that the of the so much collected tax spent on defence as it happens here is inefficient and an evil against our society.

    Athk69 Sunday, 20 November 2022 04:19 PM

    Doesn't the constitution guarantee the freedom to live? How can citizens survive at the current inflation levels, significantly diminished disposable income, significant erosion of the value of savings, high interest on loans taken, very low wage growth, very high cost of living, - All of which were due to bad politics and short sighted policies etc... doesn't this violate the fundamental right to survive? How is it that the constitutional right of citizens survival isn't violated? Rather, there should be more tax slabs that progressively introduce small incremental rates. The highest rate at the highest slab, wont affect the lower and middle income earners. This is similar to what was implemented by Thailand.

    firdhous Monday, 21 November 2022 11:52 AM

    State revenue must be added in the school syllabus as a subject and every one should be educated about the importance of state revenue, paying taxes and right use of it.

    Rehan Fernando Thursday, 24 November 2022 08:13 AM

    Only the people who have tax files which is approx. 400k files will get taxed. All others will go Scott free!

    GERIATRIC Friday, 25 November 2022 06:02 PM

    Only 150,000 Tax Files for 22 Million. Oh! Gosh!! What about the others? Consider the fate of a Retired Private Sector Employee - Total Monthly Income Rs.400,000 paying Health Insurance Policy Premium USD 2000. The Total Threshold earlier was Rs 4.2 Million which included 1.2 Million for Health and Education Expenses. When The threshold drops to Rs 1.2 Million his/her added tax burden is 36% of Rs. 3 Million which works out to Additional Rs. 90,000 per month. If the elder is paying about Rs, 350,000 per month to an Elders' Home, how is he going to find money to pay the additional Tax?

    Nuwan Sunday, 27 November 2022 01:20 PM

    Isn't the lowering of taxes by Gota was the problem? Now the increase in taxes is a problem? What do you want people? Reduce tax for goods and services.


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.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

She said/He said

Much has been written and said in the last few days since the news was releas

POLICE ON TRIAL: Exercising Authority without Accountability

Although armed with the power of the State and empowered to use force against

Downfall and death of LTTE’s Mahathaya

The Liberation Tigers of Tamil Eelam (LTTE) ceased to exist as a functioning

Rishi Sunak; why SL did not have a Tamil or Muslim as President?

Britain now has a British Asian, Hindu Prime Minister, though Rishi Sunak is