Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe said the International Monetary Fund (IMF) had proposed introducing two additional taxes, but added that they were not necessary at present as the Government’s revenue performance had exceeded targets.
Speaking to the media, Abeysinghe said discussions were underway with the IMF on the matter, noting that stronger tax collection had reduced the need for further tax measures.
“We are now collecting taxes from those who previously did not pay taxes, and we have exceeded our revenue targets. The IMF has proposed two additional taxes, but we are discussing with them that these taxes are not necessary because our revenue is performing well,” he said.
Abeysinghe also said the Government expected to reduce certain tax rates next year, particularly indirect taxes, by broadening the tax base.
Commenting on fuel taxes, he said the Government intended to remove taxes imposed on fuel once the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) had settled their outstanding debts.
He further said the upcoming Budget was expected to include measures aimed at easing the cost of living, including increased investment in health, education and public transport, alongside possible changes to the country’s tax policy. (Newswire)