News

IMF to advocate a VAT hike?

Published

5 months ago

August 27, 2024

editor

There is growing concern that the International Monetary Fund (IMF) would advocate for a hike in the VAT rate in order to close the large revenue deficit that Sri Lanka is experiencing.

According to new data, tax revenue collection as of mid-August is not meeting projections, worsening the government’s financial woes.

High levels of corruption, particularly among small and medium-sized taxpayers at the regional level, and inefficiencies in tax collection by officials have made the problem worse.

The malfunctioning RAMIS system has made things even more complicated by preventing the issuing of tax assessments for the period beginning in 2018/2019.

Due to the prevalent perception that non-compliance bears no immediate penalties, or any punishment this technological difficulty has made taxpayers reluctant to comply with their obligations.

The environment for tax collection is deteriorating due in part to the backlog of tax assessments and the ineffective enforcement.

The IMF’s commitment to fighting corruption should receive a lot of attention because significant action against corrupt officials has not yet been taken by the top chair at a satisfactory level.

Both the Investigation unit and the High Net Worth taxpayers’ unit revenue collection is very low even though there is a potential to generate more revenue if the officials (some) are controlled by the top management.

Core issues of corruption and poor management have not been adequately addressed, notwithstanding the recent leadership actions of a few regional tax officers.

The effectiveness of the current policy is called into question in light of this circumstance, as is the potential impact of further increases in the VAT rate on businesses and individual taxpayers.

Concern over whether increasing VAT rates will be enough to make up for the revenue gap in the face of these difficulties is mounting, as is the question of whether more extensive reforms are required to enhance tax collection and enforcement.

The state of affairs highlights the urgent need for sensible measures to win back taxpayer trust and guarantee that revenue collection satisfies the needs of the national budget.

Besides, it is necessary to assess the effectiveness and competency of the top management team, since they have a direct impact on the overall performance of the tax department.

News

Fmr. minister Anura Priyadarshana Yapa arrested

Published

4 hours ago

January 22, 2025

editor

Former Minister Anura Priyadarshana Yapa has been arrested by the Criminal Investigation Department (CID).

According to the Police Media Spokesperson, he has been arrested for allegedly misappropriating Rs. 6.1 million in flood relief aid in 2014.

News

A country can’t progress through laws & regulations alone – President

Published

4 hours ago

January 22, 2025

editor

President Anura Kumara Disanayake emphasized that a country cannot progress solely through laws and regulations and highlighted that tradition is a vital component of a nation.

President Disanayake emphasized that Sri Lanka has accomplished a remarkable mission through the traditions built on Buddhism and that it is the responsibility of everyone to safeguard these Buddhist traditions and pass them down securely to future generations.

The President expressed these views during a discussion held today (22) at the Presidential Secretariat on the 74th Upasampada Vinaya Karma’ ceremony of the Sri Lanka Rāmañña Maha Nikāya.

The President, recalling the historical significance of the Upasampada Vinaya Karma, a major ceremony in Buddhism, stated that the cessation of ordained monks (Upasampada Bhikkhus) would mean the dissolution of the Buddhist institution itself. He emphasized the importance of preserving these ancient traditions and carrying them forward with honour.

The national Upasampada Vinaya Karma ceremony, organized biennially by the Sri Lanka Rāmañña Maha Nikāya, is scheduled to take place from June 30 to July 5, 2025, at the Punyawardhanarama Viharaya in Vijithapura, Palugaswewa, within the Udakukkhepa Sima Malakaya.
This grand ceremony, which will ordain over 250 novice monks (Samanera), will be conducted under state sponsorship.

As the government considers the national Upasampada Vinaya Karma ceremony, which is held every two years, a dignified task, the President instructed officials to ensure that all necessary facilities are provided without any shortcomings.

The discussion was attended by prominent figures, including the Most Venerable Makulewe Wimala Mahanayake Thero, the highest prelate of the Sri Lanka Rāmañña Maha Nikāya of the Sangha ancestry of Mahavihara; Most Venerable Professor Aththangane Rathanapala Nayaka Thero, Supreme Judicial Leader of Sri Lanka Rāmañña Maha Nikāya; the Anu Nayaka Theros, Most Venerable Waleboda Gunasiri Thero and Most Venerable Ankumbure Premavansa Thero; along with the Maha Sangha, Minister of Foreign Affairs, Foreign Employment, and Tourism Vijitha Herath; Minister of Buddha Sasana, Religious, and Cultural Affairs Dr. Hiniduma Sunil Senevi; Secretary to the President Dr. Nandika Sanath Kumanayake; Senior Additional Secretary to the President Roshan Gamage; former High Court Justice and Governor of the North Central Province Wasantha Kumara Wimalasiri; Chairman of the Rāmañña Nikayarakshaka Sabha and former Speaker Karu Jayasuriya; Secretary of the Rāmañña Nikayarakshaka Sabha and former Member of Parliament Lasantha Alagiyawanna, among others.

(President’s Media Division)

News

Women MPs’ caucus discuss on setting common minimum age for marriage

Published

4 hours ago

January 22, 2025

editor

The Women Parliamentarians’ Caucus of Sri Lanka, chaired by Minister Saroja Savithri Paulraj, has discussed several legislative reforms, including a proposal to establish a common legal minimum age for marriage across all communities of the country.

Meeting on Jan. 21, the caucus had discussed the need to amend existing marriage laws as well as to correctly define a “child” in alignment with international standards to enhance child protection. efforts in Sri Lanka.