‘Tax system to be simplified to facilitate revenue-collection’

By Hiran H.Senewiratne

The government is not receiving ample tax revenue to its  coffers from the current tax system/structure and the proposed amendment to the 2017 Inland Revenue Act would  simplify it  and make it more efficient and effective when collecting revenue for the country, Secretary to the President Dr. P.B Jayasundera said at a forum.

” The country’s tax system should be driven by  new technology and the Inland Revenue Department online payment system will serve the people in an efficient and effective manner within a little  time. Technology driven tax payment systems prevent unnecessary expenditure and time for taxpayers and also the tax collector as well, Jayasundera said at a taxpayer awareness programme, organised by the Inland Revenue Department. The event was held at the Hilton Hotel, yesterday

‘Under the government’s National Policy Framework Vistas of Prosperity and Splendour, the proposed amendment to the Inland Revenue Act will create an environment to encourage taxpayers to pay taxes without evading, he said 

‘For the first time in the history, The Inland Revenue Department, Sri Lanka Customs and Excise Department would be involved in increasing and improving national productivity, which most of the time acted as only revenue collectors, he said.

Dr Jayasundera said that currently there are only 20 percent e- files in the country but with the new amendment to the Inland Revenue Act they could be increased 100 percent with the introduction of  new technology that would enable taxpayers to pay taxes through electronic devices.

” We are not happy when we look at the global ‘Doing Business Index’, because Sri Lanka’s revenue collection system is neither efficient nor effective nor simple. The simplified tax system would enable to create some attitudinal change for tax payers in the country,”he said.

He said that the legal system, tax administration and new technology should work together to reap real benefits for the country and the tax payers,  which will assist to increase revenue at a considerable level.  ‘Therefore, 80 percent tax revenue collected from 20 percent of tax paying people, could be increased to 90 percent or 95 percent with a simplified ,efficient and effective system, Jayasundera said.