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Only one income taxpayer paying over Rs. 300 mn. a year says Aluthgamage
Registered tax files 500,000, only 31,000 pay personal tax
Proposed amendments to Sri Lanka’s Inland Revenue Act will serve to address purported under performance of Inland Revenue Department (IRD) officials in a bid to enhance income tax collection, Government MP Mahindananda Aluthgamage said, noting that there is only one person in the country who pays taxes in excess of 300 million rupees.
Aluthgamage, a former minister and government MP who chairs the Sectoral Oversight Committee on National Economic and Physical Planning, told press conference on Thursday (Aug. 17) that the Inland Revenue Amendment Bill, once passed in parliament, will enable robust measures to address the issue.
The objective is to make formidable decisions regarding officials not contributing effectively to the state’s tax revenue enhancement, a statement from the president’s media division (PMD) quoted Aluthgamage as saying.
“There’s only one person in Sri Lanka who pays more than 300 million rupees in tax. Only three people between 50 million and 100 million rupees; only 16 people between 25 and 50 million;
One hundred and thirty seven between five and 10 million; 508 between two and five million; 804 between one and two million, and 5,473 between 500,000 and one million rupees,” he said.
The MP said Sri Lanka is still behind on a condition imposed by the International Monetary Fund (IMF) in exchange for a bailout package to increase state revenue.
“We’re trying to reach that target. The government will have to take some unpopular measures,” he said.
“Instead of taxing the small man on his salary, state revenue can be increased by taxing those who should be taxed,” he said, noting that the IRD is owed 904 billion rupees in tax collection.
An immediate overhaul of the nation’s tax policy is imperative, the PMD quoted Aluthgamage as saying.A substantial burden rests on the Inland Revenue Department, tasked with collecting the 904 billion rupees in taxes.
He said that Sri Lanka is the only country in the world permitting four tax appeals and it would take a “staggering” 15 years to dispose of these appeals.Speaking at a meeting of the committee he chairs on July 06, Aluthgamage said only 31,000 Sri Lankans out of some 500,000 persons with registered income tax files pay personal income tax while 328 registered limited companies out of 105,000 contribute to 82 percent of tax revenue.
Sri Lanka has been compelled to increase its tax revenue in the wake of the 2022 currency crisis, the worst in decades, and the subsequent agreement with the IMF over a 2.9 billion dollar extended fund facility. However, resistance to a hike in progressive personal income tax has been high, with many high-income earning professionals in the state sector holding a number of protests against the increase.
Value added taxes were also raised to 15 percent from eight percent last year. Another 2.5 percent cascading tax was imposed on top of VAT, the effect of which was estimated to be around 4.5 or more through the cascading effect.
The IMF had reportedly asked the cash strapped Sri Lankan government to impose taxes on all who receive monthly income of above 41,667 rupees as a prior condition for the bailout, butPresident Ranil Wickremesinghe’s administration had instead imposed a Pay As You Earn (PAYE) tax on everyone who earns over 100,000 rupees a month.
The IMF has defended the tax hike, arguing that creditors and investors will not support Sri Lanka because tax to GDP had fallen steeply. Taxes, including value added taxes were slashed in 2019 December to target a ‘persistent output gap’, after serial currency crises from flexible inflation targeting reduced growth. (Economy Next)
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
