News

IMF to advocate a VAT hike?

Published

3 weeks 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

US eager to work with elected president – Julie Chung

Published

4 hours ago

September 15, 2024

editor

US Ambassador to Sri Lanka, Julie Chung, expressed her eagerness to work closely with the president elected by the Sri Lankan people.

In a post on X, she highlighted the importance of ensuring a free and fair election, calling it a critical step for democracy in Sri Lanka.

On this International Day of Democracy, we celebrate the principles of any strong and stable democracy, like accountability, human rights, justice, and ensuring that every individual has a say in shaping their future through elections. No process is more essential to Sri Lanka’s…
— Ambassador Julie Chung (@USAmbSL) September 15, 2024

News

Why did the President’s backup helicopter make an emergency landing?

Published

5 hours ago

September 15, 2024

editor

A backup helicopter accompanying President Ranil Wickremesinghe made an emergency landing in Eppawala yesterday.

The Sri Lanka Air Force stated that a technical defect was indicated on the helicopter’s lighting panel, prompting the precautionary landing in a paddy field.

The Sri Lanka Air Force also says that a replacement helicopter was sent for that.

President Wickremesinghe was proceeding to Kegalle after addressing an election meeting in Jaffna.

News

New bill targets proceeds of crime with strict penalties

Published

8 hours ago

September 15, 2024

editor

Those who possess any property obtained through proceeds of crime or engage with it in any form of transaction will be considered to be committing a punishable offence under the law and can be prosecuted in the High Court. Those found guilty will face a fine of Rs 10 million and a 15-year jail term.

The new bill titled “Proceeds of Crime,” published this week by the Ministry of Justice, Prison Affairs, and Constitutional Reforms, will enable the recovery of proceeds of crime and, through inter-agency cooperation and international collaboration, will facilitate investigations to recover the ill-gotten stolen wealth.

Under the proposed bill, any person who has knowledge or information about the proceeds of crime and fails to disclose such information to the designated police officer or to the designated officer of the Commission to Investigate Allegations of Bribery or Corruption is considered to be committing an offence as well.

According to the bill, a statement made or response given in the form of an affidavit or a written or oral statement to an investigation officer in response to a notice served on such person under Section 68 of this Act to be admissible against the maker of such affidavit or statement or against any third party.

The bill also enables the setting up of an entity called the Proceeds of Crime Management Authority to protect, manage, and dispose of restrained, seized or frozen proceeds of crime.

The bill vests adequate powers with designated officers of the Authority to seek and obtain assistance from administrative, law enforcement, and judicial competent authorities of other countries for tracing, identification, search, detection, and examination of property suspected to be proceeds of crime and for other investigational purposes.

The officers can also seek assistance for gathering evidence, including documents, witness statements, reports, and other materials suspected to be proceeds of crime.

(Sunday Times)
(This story, originally published by Sunday Times has not been edited by SLM staff)