Professionals’ Trade Union Alliance seeks to meet President over tax increases

By Ifham Nizam

Professionals’ Trade Union Alliance, a collective of over 30 multi-sectorial Professional Trade Unions, yesterday urged President Ranil Wickremesinghe to give them an opportunity to discuss the effects of the New Revenue Act.

Professionals’ Trade Union Alliance Convener, Dr. Kasun Gamage yesterday said that they were highly concerned about the detrimental effects of the New Inland Revenue Act. He stressed there should be a mechanism in place to ensure transparency, fiscal prudence and efficiency and eliminate corruption and waste involving tax revenue.

“We firmly believe that the aforesaid Act is not sustainable and would lead to increased brain drain and further contraction of the economy,” he added.

He said that they were awaiting the President’s response soon.

Given very high inflation, reduced purchasing power, and high interest rates, deduction of PAYE tax at an unreasonable and unprecedented rate had placed the financial stability of their member professionals in a precarious situation, Gamage said. “Our main concerns about the New Inland Revenue Act are as follows:

Low taxation threshold, high tax percentages and ceiling, with reduced tax slab values and absence of differentiation between salary from employment and profit from business.

“As professionals, who have chosen to stay and serve our motherland at her time of dire need, we have forwarded our proposals for a sustainable, effective and fair tax policy.

“However, our intention as professionals to positively contribute towards a better tax policy has not been considered by the authorities responsible for formulating tax policy.”