20 September 2024 12:21 am Views - 243
| Prof. Lakshman R. Watawala |
By Nuzla Rizkiya
Amid the prevalent fiscal promises made by various parties to uplift the economy, the Institute of Certified Management Accountants (CMA) Sri Lanka asserted that the next administration should make fiscal commitments, such as salary increases only after a thorough analysis of the country’s taxation framework.
Speaking at a recent CMA webinar on taxation, which drew over 1,000 participants, CMA Sri Lanka President Prof. Lakshman R. Watawala stressed that instead of salary increments, Sri Lanka needs to focus more on skill development in areas such as digitalisation and taxation to enhance productivity which could naturally lead to
higher wages.
“What the people of this country need is the skills. The skills have to be developed. But what I have heard on the political platform is all about giving increases in salaries. That is not what the people want. If you develop your skill, you get double the salary. So that is what they must do,” Prof. Watawala said.
“Digital technology is very important to this country. All our accounting methods, procedures, everything is digitalised. That’s why today, we are able to create value for our clients, our society and our members. That’s a very important thing,” he added.
He went on to explain taxation as a subject area in which citizens in a country should be compelled to comply with, with the least amount of resistance. Therefore, administrations should seek the advice of qualified professionals rather than waiting for professionals to chase after politicians.
Even if Sri Lanka’s private sector has made significant advancements in embracing digitalisation and advanced accounting methods, the public sector still lags behind in this area, creating inefficiencies in tax collection and compliance.
“The private sector is the one earning all the foreign exchange for this country. So we are able to pay our taxes, which is the main form of revenue for the government. So, if they (governments) are going to pay more salaries and increase expenses, who is going to pay the higher taxes? We need to look into this and professional advice has to be sought,” Prof Watawala asserted.