Aug 07, 2021

87% of Sri Lanka's richest have evaded taxes!

As at the end of 2020, the number of personal tax files maintained by the Inland Revenue Department are around 280,000.

However, it is reported that only 13% of them are currently paying taxes (Average : 35,000).

With the current government increasing the minimum taxable income to Rs. 03 million, from the Budget 2020, the number of active files will be reduced to 16,000 in 2021, the 'Deshaya' newspaper reports, quoting IRD sources.

It further adds :

The total tax revenue has fallen from 10 billion rupees to 06 billion rupees in 2019 and is expected to dip further in 2021.

Considering the salaries and allowances of employees as well as the maintenance expenses of the department, it costs more than one rupee to earn one rupee, IRD employees say.

The number of companies paying income tax is around 1,500 and the tax revenue from them is 40 billion rupees.

However, the true number of taxable entrepreneurs could be three times as much, it has been revealed that many have managed to show much lower levels of income than their actual figures by building 'contacts'.

Employees also say they are being pressured by some powerful government figures to refrain from auditing files of certain companies.

(Source - Deshaya)