Only 31,000 pay tax from a total of 500,000 personal income tax files in Sri Lanka, Chair of the Sectoral Oversight Committee on National Economic and Physical Plans MP Mahindananda Aluthgamage stated.
According to a statement from the Parliament of Sri Lanka, the MP pointed out that there are 105,000 registered limited companies in the country, but 82% of the tax revenue is received from only 382 companies.
MP Aluthgamage also emphasized that it is important to maintain the inflation, the reserves of the country and the government’s income in an optimal condition by December by the time of the second review of the International Monetary Fund, given that the said factors must be taken into account when granting loans.
He further stated that therefore, his Committee will hold regular discussions with Sri Lanka Customs, Excise Department and Inland Revenue Department to provide necessary facilities to increase the state revenue.
MP Mahindananda Aluthgamage made the remarks when the Sectoral Oversight Committee on National Economic and Physical Plans met in Parliament recently (July 06).
During the meeting, the MP spoke at length about the failure of the Inland Revenue Department to collect the tax revenue and stated that the Committee is making positive improvements in this regard. There was also a discussion about the collection of 904 billion rupees in arrears which is due to the Inland Revenue Department.
MP Aluthgamage also pointed out that discussions are being held with the Minister of Justice to amend the Inland Revenue Act. The MP has expressed his intention to provide his utmost assistance to fill the existing employee vacancies in the Inland Revenue Department.
The Inland Revenue Commissioner General who spoke on the occasion said that he appreciated the support received from the Sectoral Oversight Committee on National Economic and Physical Plans to make the work of his department efficient.
The Commissioner stated that the tax revenue target given by the government for the year 2023 of Rs 1.6 trillion was expected to be earned by 40% in the first 6 months and 60% in the remaining 6 months, and the target for the first 6 months has already been met. He further stated that work is being done to generate expected tax revenue in the remaining 6 months.
MP Aluthgamage emphasized the need to establish a systematic mechanism to regulate the collection of tax revenue. Members as well as officials pointed out that due to the fact that the data provided for the registration of companies in this country is not true, they have to face problems in tax collection.
The Committee also discussed at length the need to establish a digital data system linking the Sri Lanka Customs Department, the Excise Department and the Inland Revenue Department as soon as possible, as well as the need to re-register the private tax file in the country.
Members of the Committee MPs Wimalaweera Dissanayake, Eran Wickramaratne, Sudath Manjula, Gunathilaka Rajapaksha, Dhammika Perera, Udayana Kirindigoda, Karunadasa Kodithuwakku, Madhura Withanage, and Mohomad Muzammil were present at the Committee meeting.
A group of officials including the Inland Revenue Commissioner General was also present at the Committee meeting. (NewsWire)