News
FSP faults govt. for tax amnesty
The Frontline Socialist Party (FSP), a splinter group of the JVP, has faulted their erstwhile comrades in the government for including Clause 1.9 in the 2025 Budget Technical Notes, which allows tax-evading businesses to settle unpaid taxes from 2022–2023 within six months without penalties or interest.
Addressing a press conference at the party headquarters in Nugegoda on Friday FSP Education Secretary Pubudu Jagoda highlighted that existing laws, such as the Inland Revenue Act No. 24 of 2017, mandate a 1.5% monthly interest (18% annually) and a 25% fine for tax evasion. However, the new clause waives these penalties, costing the government billions in lost revenue.
“However, the Clause 1.9 of Technical Note of the Budget proposals presented by President Anura Kumara Dissanayake proposes if these tax evaders could settle their taxes due from 2022 to 2023 within six months, the provisions of the Inland Revenue Act No. 24 of 2017 and the Tax Act No. 14 of 2022 regarding penalties for unpaid taxes would not apply for such defaulters.
We know that Section 157 of the Inland Revenue Act No. 24 of 2017 specifies that if a taxpayer fails to pay the due taxes, they must pay the applicable interest. Section 159 clearly states that an interest rate of 1.5% per month must be charged, which amounts to 18% per year. Additionally, a 25% fine must be paid. Now, according to the budget, the government is saying that these provisions of the law do not apply, and they will not collect these fines and interest. Clause 1.9 states that if unpaid taxes from 2022–2023 are settled within six months, the provisions of the Inland Revenue Act No. 24 of 2017 and the Tax Act No. 14 of 2022 regarding penalties for unpaid taxes will not apply.
For example, WM Mendis and Company, which evaded Rs. 1.5 billion in taxes, would owe Rs. 1 billion in interest over five years, but the government is forgoing this. Jagoda revealed that companies evaded Rs. 243 billion from March 2023 to December 2024, with total unpaid taxes reaching Rs. 1,068 billion. Meanwhile, ordinary citizens, including 580,000 families, pay nearly Rs. 40,000 monthly in taxes, facing heavy burdens while the government offers relief to fraudulent businesses. The FSP called on former comrades in government to clarify their stance on this issue.
Prime Minister Dr. Harini Amarasuriya met with the Managing Director of the International Monetary Fund (IMF), Dr. Kristalina Georgieva, at Temple Tress on the 17th of February
Dr. Georgieva, commended the Government’s efforts in stabilizing the country’s economy and in managing recent economic and natural shocks. She noted that Cyclone Ditwah had caused severe impacts, especially on economically vulnerable communities, underscoring the importance of targeted support and resilience-building measures.
The Prime Minister expressed appreciation for the IMF’s continued support to Sri Lanka, particularly in the aftermath of Cyclone Ditwah. The PM further emphasized that real economic recovery and development must directly benefit the economically vulnerable groups and ensure inclusive growth, highlighting the need for Sri Lanka to attract quality and sustainable investments, particularly in the tourism sector.
The importance of reforming the education system to focus not only on knowledge acquisition but also on skills development and employability was also discussed
The meeting was attended by the Chief of Staff of the IMF Managing Director Andreas Bauer, Director, Asia and Pacific Department, Dr. Krishna Srinivasan Division Chief (Strategic Communications), Communications Department, Pierre Mejlak Resident Representative for Sri Lanka Dr. Martha Woldemichael, Governor of the Central Bank of Sri Lanka Dr. P. Nandalal Weerasinghe, and Deputy Governor Dr. C. Amarasekara, Secretary to the Prime Minister Pradeep Saputhanthri and Additional Secretary to the Prime Minister Ms. Sagarika Bogahawatta.
[Prime Minister’s Media Division]
The Cabinet of Ministers approved the resolution forwarded by the Minister of Health and Mass Media to relocate the Deniyaya Base Hospital after constructing a new hospital with a capacity of 300 beds at an estimated cost of Rupees 6,000 million.
The Southern Provincial Department of Health has acquired a plot of land in Handford estate which is approximately 03 kilometres away from the town for this purpose.
News
Cabinet nod to legally empower methodology for implementing the ‘Praja Shakthi’ poverty alleviation national movement
The Cabinet of Ministers granted approval for the resolution furnished by the Minister of Rural Development, Social Security and Community Empowerment to instruct the Legal Draftsman to draft a bill to legally empower the implementation of ‘Praja Shakthi’ (Strength of the Community) poverty alleviation national movement
Sri Lanka, Zimbabwe seek momentum sustenance ahead of stiffer challenges
West Indies aim to keep up rhythm as Italy look to end on a high
Pakistan into Super Eight after Farhan ton sinks Namibia
Muscular South Africa stroll into Super Eight with all-win record
Pakistan bat first, drop Shaheen Afridi in must-win encounter against Namibia
New Bangladesh sports minister wants to fast track cases against Shakib and Mortaza
‘Dates have the highest sugar content to fight Coronavirus’
Sunday Island 27 December – Headlines
#SundayIsland 17th December – Headlines
Sunday Island – 28th March
Sunday Island Headlines – 21 March
Sunday Island – 21st February – Headlines
-
Life style4 days agoMarriot new GM Suranga
-
Business3 days agoMinistry of Brands to launch Sri Lanka’s first off-price retail destination
-
Features4 days agoMonks’ march, in America and Sri Lanka
-
Opinion7 days agoWill computers ever be intelligent?
-
Features4 days agoThe Rise of Takaichi
-
Features4 days agoWetlands of Sri Lanka:
-
News4 days agoThailand to recruit 10,000 Lankans under new labour pact
-
News4 days agoMassive Sangha confab to address alleged injustices against monks