Mahindananda highlights extent of tax evasion in Sri Lanka

By Yohan Perera and Ajith Siriwardana
Highlighting massive tax evasion in Sri Lanka, MP Mahindananda Aluthgamage said only 25,692 companies have paid income tax, though 100,005 companies have opened tax files, as of today.  

Speaking during an adjournment debate in Parliament, Aluthgamage said only 343 companies account to 82 percent of the income tax revenue earned by the Inland Revenue Department.

“Only 185 companies have paid Value Added Tax as of today, though 60,721 companies have opened tax files,” Aluthgamage said.

“There is a leading clothing outlet chain and a leading supermarket chain in Sri Lanka, which do not pay a single cent as taxes,” he added.

Coming up with further revelations, Aluthgamage said only 59,000 individuals have paid income tax in 2021, though there were 292,305 tax files opened in 2021. 

“We also request that agreements should be made to get all 225 MPs to open income tax files, as only around 150 are paying income tax,” the MP stressed.

“It is possible to earn trillions, if the tax revenue is managed and it may not become necessary to seek the assistance of the IMF, if due tax revenue is collected,” Aluthgamage pointed out.