Jun 02, 2018

60,000 new tax files! – Target of 250,000!! Featured

With the implementation of the new Inland Revenue Act, by May 31 60,000 new tax files had been opened, said the IR Department. 

According to its Commissioner General Ivan Dissanayake, by the end of the year it is expected to increase to 250,000. 

He expressed hope that by 2020 the number of  citizens paying their income tax would increase to 3 million. 
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Finance Minister Mangala Samaraweera said that by 2020 the direct taxes is expected to increase from  18% to 40%. 

The Minister made this comment addressing a media briefing on April 02 after the new Inland Revenue Act was implemented from April 01. 

“In fact we charge 82% of the taxes as indirect taxes which is charged from the day-to-day commodities used by the public which has caused them a great burden with the cost of living increase. 

The rich and poor pay the same tax for the basic goods and facilities. This is not a fair system. Therefore, we intend to increase the direct taxes to 40% and reduce the indirect taxes to 60%, bringing about structural changes as soon as possible,” the Finance Minister said. 

Allegations by the people:

In response to a question raised by the BBC on the improper utilisation of tax revenue, the minister noted, “I too admit that the taxes charged from the people is not utilised properly. I too have my own opinion and that is why we are trying to correct the mistakes made over the past 70 years and move forward with good governance.”