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CBSL Governor urges public to become informants to boost tax revenue
ECONOMYNEXT –Central Bank Governor Nandalal Weerasinghe urged the public to become informants to broaden the tax net and thus reduce both overall direct and indirect taxes.
The government has raised Value Added Tax (VAT), an indirect tax to 18 percent from 15 percent with effect from January 1. The move also will see some VAT exempted goods like fuel, gas, health, and educational products are now subject to 18 percent tax.
The new move has raised prices of fuel, cooking gas, foods, private transport charges, and many other goods.
Sri Lankan citizens who are not used to paying higher taxes are also now forced to register for taxes and file for taxes on an annual basis. The move is expected to boost the government revenue to 15 percent of the gross domestic products (GDP) in 2026 from the last year’s 11 percent.
Analysts say most Sri Lankans are not ready to pay any taxes because they do not see any benefits for paying government taxes amid widely reported corruption allegations.
Weerasinghe, the central bank governor, who has been instrumental in navigating the monetary policy and maintaining the price stability of the bankrupted Sri Lankan economy said public needs to do their responsibility to reduce the overall taxes in the future.
“From the public side, they think why they always pay high taxes whereas others are not paying taxes. If the public want to reduce the taxes in the future, what I see is, while they pay their taxes, they should encourage others to pay taxes or inform the authorities (on those who are not paying taxes),” Weerasinghe told a television programme late on Monday (01) hosted by President’s Media Center (PMC).
“That is the way to reduce the amount of VAT or personal income tax they pay.”
Weerasinghe’s comments come as Sri Lanka is desperate to boost the government revenue in line with the commitment it agreed with the International Monetary Fund (IMF) in return of a $3 billion loan.
He also warned that some businesses may be engaging in VAT fraud. In countries where VAT works well, all businesses have to issue a VAT invoice to customers whether they are tax-paying businesses or members of the public.
Unlike income tax, where the state takes part of a person’s earned income, VAT charged from the public is not the income of a business, but a collection made on behalf of the state, analysts say.
“If we are paying PAYE (Pay As You Earn) tax, we have to pay that,” Weerasinghe said, referring to a tax that is deducted at the point of earning.
“But some business people who have the same income do not pay the tax and they keep double receipt books and without showing the real income, they show less income and pay less taxes.”
“If I am paying tax and if I know somebody else is not paying, then I can reduce my tax burden only by adding that person into the tax net.”
“In some places, when you buy goods, they ask if you want the invoice with or without that VAT. If I agree to pay less (for the invoice without taxes), then my tax burden will not ease ever.”
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
