1 September 2022 12:47 am Views - 212
By Yohan Perera and Ajith Siriwardana
Sri Lanka does not have to seek the assistance of International Monetary Fund (IMF) if revenue management institutions are administered effectively to meet their full potential, MP Mahindananda Aluthgamage told Parliament yesterday.
“Only around 300,000 persons pay income tax today although there are more than 500,000 tax files with the Inland Revenue Department. One of the top five rice mill owners pay only Rs 900,000 annually as income tax though the mill earns a net profit of Rs 50 billion. A liquor store owner pays only Rs 200,000 annually though a profit of Rs.75,000 is made daily.
A filling station earns Rs 75,000 a day though the total income tax is only Rs 50,000 annually,” the MP said.
“ Not a single tuition teacher pays income tax though they earn around Rs. 700,000,” he added.
“ There are 16 deputy general managers at People’s Bank and they are given a vehicle allowance of Rs. 850,000 a month. There are some in the Central Bank and other leading state officers whose monthly salaries exceed Rs 2.5 million. Many criticize 225 MPs for enjoying perks when others enjoy even greater perks,” he said.
“ It is possible to increase government revenue if these perks are looked into and rectified and the revenue collecting institutions such as Customs, Inland Revenue and Excise Department are managed effectively. We don’t have to seek the assistance of the IMF if these steps are taken,” the MP stressed.