A Brief Colonial History Of Ceylon(SriLanka)
Sri Lanka: One Island Two Nations
A Brief Colonial History Of Ceylon(SriLanka)
Sri Lanka: One Island Two Nations
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Thiranjala Weerasinghe sj.- One Island Two Nations
?????????????????????????????????????????????????Friday, July 28, 2017
Is the IMF deciding Sri Lanka’s tax policy – Ajith Galhena
The
country has several tax collecting institutions – Inland Revenue,
Excise And Customs Departments. The IRD collects around 32 per cent of
the total income tax. These institutions are being administered as per
provisions in the act of 2006/10.
This act has considerable shortcomings, the biggest being on tax
exemptions. If those exemptions are removed, the IRD will be able to
achieve its targeted income. The IRD employees union has told the
government to rectify it by making certain amendments to the act.
Taxpayers or institutions getting directly involved in taxes or any
other party has not asked for a new IRD act. It is only a proposal by
former finance minister Ravi Karunanayake. His successor Mangala
Samaraweera too, supports it, said secretary of the union Ajith Galhena
to Lanka News Web.
To introduce this act, the government has obtained loans from the IMF,
which lays down certain conditions when granting comprehensive credit.
On July 19, it provided the 167.2 million US dollar third installment of
that loan. One condition was that a new IRD act was required. A
newspaper announcement by the Central Bank on 18 July 2017 says the IMF
is happy that the new act is already before parliament.
Galhena said it is clear to them that this process is being brought not
to the wants of tax professionals or the department officials, but as
the fulfillment of a condition to obtain a loan. We see this as an act
forced on the IRD, he said.
Harm from the new act
The existing act distributes powers under two methods to the assistant
commissioner, deputy commissioner general and the commissioner general.
The first is the act empowers the officials to use power on specific
occasions. The other is that the commissioner general can transfer
his/her powers to the subordinates.
A new computer software system was introduced for the IRD through a
Singaporean company, for which Rs. five billion has so far been spent.
Also, a human resources and programme administration project is also
being implemented.
Galhena said both these have contributed to an increase in revenue.
However, the new act will suspend these projects and the money already
spent will go waste. Maximum results can be reaped if these projects
continue in the next two years too, he said.
Galhena said the president admitted a small problem here and promised
orally on two occasions to meet and discuss the matter. But, that has
not materialized. The prime minister is yet to respond to a request for a
meeting.
In the meantime, he said, three cases have been filed in the Supreme
Court. Those cases continued to be heard until the 25th. At courts, we
saw certain concessionary aspects. The chief justice ordered on the 24th
to refer the draft to the speaker. We expect relief from courts. It is
more likely parliament will adopt this. But, we will not abandon our
struggle. We will go forward with professionals and all others who will
be affected by this, he added.
When we telephoned Karunanayake for a comment, he cut the line saying,
“I have done saying what has to be said. I cannot say anything.”
Attempts to reach Samaraweera and his media secretary Asitha were unsuccessful.