20 October 2022 09:15 am Views - 94
By Yohan Perera
Samagi Jana Balawegaya (SJB) MP Eran Wickramaratne yesterday said the financial reports which President Ranil Wickremesinghe came out with last evening has to be rethought and revisited.
“It is inevitable that tax revenues have to increase. Primary balance has been created only 4 times since Sri Lanka’s independence; twice in the 1950s and in 2017 and 2018. Creating a primary balance is a clear indication of debt sustainability. This was possible in the recent past because macro-economic management was independent of executive interference. However, IMF targets on primary balances needs to be revisited by providing a longer period to achieve the target.
Targets must be reasonable and achievable if Sri Lanka is to succeed on its 17th agreement with the IMF,” Wickramaratne said.
“Whilst the move from indirect taxes to direct taxes is inevitable in cushioning the poor and vulnerable, given the foreign currency crisis, the taxation on exports should be implemented gradually. Suggest the 30% threshold on exports be revisited,” he added. .