SJB asks govt. to reduce taxes on professionals

by Saman Indrajith

The SJB yesterday proposed that the government reduce taxes on professionals and compensate for the revenue loss by other means such as tackling the problem of counterfeit revenue stickers on liquor bottles.

Addressing the media at the Opposition Leader’s Office in Colombo, SJB Colombo District MP and economist Dr. Harsha de Silva said that there was a need for a comprehensive solution. He said that the government could address the issue of professionals leaving the country due to high taxes by reducing taxes on them and recovering the substantial losses caused by counterfeit revenue stickers.

Dr. de Silva said: “The national economy suffers an annual loss of approximately Rs 80 to 100 billion due to the counterfeit liquor sticker scam. Rather than burdening professionals, the government should solve this problem and recoup the necessary funds through this channel. It raises questions about the government’s ethics when it permits liquor producers to profit from theft and, at the same time, imposes taxes on professionals.”

Dr. de Silva said that there was an urgent need of addressing this issue promptly, suggesting that failure to do so could lead to concerns from international organizations like the International Monetary Fund (IMF) when considering the release of the next tranche of its loan facility.

“We investigated this matter thoroughly. Our investigation has revealed the involvement of several senior Excise officers in this scam. The only viable solution is to transition to a new digital sticker system that all liquor producers must adhere to. This new sticker should be easily verifiable by all parties, including consumers.”

The MP said: “Currently, each liquor bottle sticker costs Rs 1.90, but adopting digital stickers could reduce this cost to just 20 cents.” He said that action should be taken against the Indian company currently supplying the stickers because there is an overcharging.

“We must put an end to this financial drain and combat such scams to ensure that government coffers receive their due revenue. This would enable the government to eliminate taxes on professionals, curbing the brain drain issue,” Dr. de Silva said.