Exporters tell govt. to improve tax mechanisms to boost state revenues

• Say all citizens should declare their wealth and it should begin with political authorities 
• Sri Lanka has around 250,000 tax files, despite 21mn plus population and six million households
• Point out that political influence has hindered tax collection process
• Call to scrap ad hoc tax holidays and to introduce comprehensive investment relief system to boost investments 

The National Chamber of Exporters (NCE) called on the authorities to focus on the tax mechanisms in the country, so that higher revenues can be fetched for the economy, specially in the current juncture.  The export chamber emphasised the need for introducing a proper mechanism to maximise the tax revenue of the country.  

“It is mandatory to have robust policies in place to help the country stand up and move forward. The government must facilitate the Inland Revenue Department to encourage all citizens to declare their wealth and exercise the existing laws related to collection of tax revenue,” the NCE said in a statement yesterday. 

According to published records, the total tax files are around 250,000, in a population of 21 million plus and six million households.  
Even though there is a law enforced on parliamentarians to declare assets, less than 10 of the members have consented so far.
“This process must begin from the country’s first citizen,” the NCE stressed. 

Tangible mechanisms must be introduced and implemented to investigate and apprehend the potential taxpayers, who maintain assets overseas and all monetary transactions within the country should be monitored by revenue authorities.  

The chamber went on to assert that the granting of ad hoc tax holidays should be avoided and a comprehensive investment relief system to boost investments must be introduced.    The NCE pointed out that undue political influence has hindered the tax collection process, making Sri Lanka vulnerable as a developing country.  

“All responsible stakeholders of the Treasury, Central Bank and the team coordinating with the IMF in debt restructuring must collectively act together in carrying out the immediate tasks at hand. It may also be endorsed by the IMF as well since they require debt sustainability from Sri Lanka,” the NCE said.