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Govt. urged to crack down on tax evaders instead of taxpayers, says MP Harsha de Silva
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SJB MP and Chairman of the Committee on Public Finance, Harsha de Silva, on Thursday (02), urged the government to take action against tax evaders instead of harassing law-abiding taxpayers.
According to MP Harsha de Silva, the government expected to collect Rs. 718 billion as corporate and personal income taxes for 2023, but as of October 16, 2023, the actual collection had reached only Rs. 495 billion. However, in a surprising contrast, PAYE taxes, which were projected to yield 100 billion rupees, had already exceeded expectations, bringing in 119 billion rupees. Therefore, he proposed to amend the current PAYE tax structure, as the government would go on to collect 125 billion rupees at the current compliance level and 175 billion rupees at a 100% compliance rate.
Furthermore, withholding tax collections exceeded expectations, he said. The government had anticipated 90 billion rupees but collected almost 122 billion rupees, showcasing that forcibly enforced taxes are being collected, while voluntary compliance remains substantially low.
MP Harsha also highlighted significant shortfalls in other tax categories. The Betting and Gaming levy, expected to generate 10 billion rupees, only managed 5.6 billion rupees. Similarly, Value Added Taxes (VAT) were projected to contribute 553 billion rupees, but collections stand at 350 billion rupees, with concerns raised about the upcoming VAT changes.
“This discrepancy in tax collection calls into question the government’s approach to fiscal-based revenue consolidation. It prompts concerns about the fairness of increasing taxes on honest taxpayers while allowing a significant portion of potential revenue to go uncollected from tax evaders. Moreover, the inconsistency in tax policies, with the same individuals who reduced taxes to 8% in 2019 now responsible for an 18% increase, further deepens public skepticism about the government’s policy direction,” he said.
MP Harsha de Silva also cited an example from the Excise Department, where the government had aimed to collect 217 billion rupees, inclusive of liquor tax, tobacco tax, sticker tax etc. However, the actual collection stands at just 124 billion rupees, creating a substantial 92 billion rupees shortfall.
“My comments serve as a wake-up call for the government to address the issue of tax evasion and to rethink its approach to tax collection. Prioritizing the collection of taxes from tax evaders rather than increasing the burden on law-abiding citizens is crucial for a fair and equitable tax system. The public is now looking to the government to take action to rectify the situation and ensure a more balanced and just tax system for all,” he said.
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Govt. to initiate talks on setting up Truth Commission: FM Herath
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UNHRC Session in Geneva:
The JVP/NPP government has expressed its willingness, at the UNHRC in Geneva to initiate talks on setting up a Truth and Reconciliation Commission to investigate acts of violence caused by racism and religious extremism,
Addressing the High-Level Segment of the 58th Regular Session of the United Nations Human Rights Council (UNHRC) in Geneva, Foreign Minister Vijitha Herath said: “The contours of a truth and reconciliation framework, will be further discussed with the broadest possible cross section of stakeholders, before operationalisation to ensure a process that has the trust of all Sri Lankans. Our aim is to make the domestic mechanisms credible and sound within the constitutional framework. This will include strengthening the work towards a truth and reconciliation commission empowered to investigate acts of violence caused by racism and religious extremism that give rise to tensions within Sri Lankan society.”
“The Government has pledged to take tangible steps in the interest of further advancing national unity and reconciliation. The President has proposed to declare a Sri Lanka Day, in line with our vision for a reconciled Sri Lanka and commitment to bridging gaps between communities. We will ensure that the domestic mechanisms and processes, established to address challenges emanating from the conflict, will continue their work in an independent and credible manner, within the Constitutional framework. Domestic institutions, such as the Office on Missing Persons (OMP), Office for Reparations, and Office for National Unity and Reconciliation (ONUR), will be strengthened,” he said.
Minister Herath reaffirmed Sri Lanka’s commitment to human rights, reconciliation, and sustainable development, highlighting the country’s progress and government’s strategies for continued engagement with the international community.
The government is firmly and sincerely committed to working towards a unified Sri Lanka that respects and celebrates the diversity of its people with no division or discrimination based on race, religion, class and caste. We will not leave room for a resurgence of divisive racism or religious extremism in our country. The fundamental and long standing principles of democracy and freedom enshrined in our Constitution will be fully respected and safeguarded while protecting the human rights of all citizens. Every citizen should feel free to practice their religion, speak their language, and live according to their cultural values without fear or discrimination. No one should feel that their beliefs, culture, or political affiliations will make them targets of undue pressure or prejudice. Administrative, political and electoral processes will be activated towards this end.
A number of confidence building measures have also been taken in the last few months towards reconciliation. In November 2024, a number of roads in the Northern Province, including the Palali-Achchuveli main road, were opened for public use, after several decades. The President, during his visit to the North in January this year, made an open invitation to Tamil-speaking youth to be part of Sri Lanka’s police service. The 2025 Budget includes significant allocations to upgrade the libraries throughout the country, including the historical Jaffna library which is a symbol of education and enlightenment for the Tamil community, he said.
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Indonesia to support Clean Sri Lanka initiative
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Indonesia has pledged support for Clean Sri Lanka programme, the President’s Media Division said.
The assistance in this regard was assured by Indonesian Ambassador Dewi Gustina Tobing when she called on President Anura Kumara Dissanayake at the Presidential Secretariat on Tuesday, the PMD said.
During the discussion, Ambassador Tobing extended Indonesia’s well wishes to the new government and reaffirmed Indonesia’s commitment to strengthening the 70-year-long friendship between the two nations. She said that Indonesia’s current administration would support the Clean Sri Lanka programme, noting that measures have been taken to implement a similar initiative in Indonesia.
The discussions also focused on establishing vibrant trade agreements and free trade arrangements between the two nations. Additionally, both parties explored opportunities to expand markets in a mutually beneficial manner while further strengthening economic, social and cultural ties. Senior Additional Secretary to the President, Roshan Gamage and Indonesian Deputy Ambassador, Fiki Oktanio, were also present at the meeting, the release said.
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First batch of vehicles imported for private use, since 2020, arrives
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The first batch of vehicles imported for private use arrived at the Colombo Port on Tuesday (25) afternoon, following the government’s decision to end a five-year suspension on vehicle imports to conserve meagre foreign reserves.
Speaking to journalists in Colombo on Wednesday morning, Vehicle Importers’ Association of Sri Lanka (VIASL) President Prasad Manage said the first shipment arrived from Thailand, and another shipment from Japan is scheduled to arrive at the Hambantota International Port on Thursday (27).
The Sri Lankan government officially lifted the temporary ban on vehicle imports, which had been in place since early 2020, on January 31, 2025.
One of the primary reasons for lifting the suspension is to boost state revenue and meet the tax target of 15 percent of gross domestic product, a requirement under Sri Lanka’s bailout agreement with the International Monetary Fund (IMF).
During his recent Budget speech in Parliament, Sri Lankan President Anura Kumara Dissanayake said the liberalization of motor vehicle imports is expected to generate a significant portion of the government’s revenue targets.
However, he emphasized that vehicle imports will be closely monitored to prevent any adverse effects on the country’s external sector stability.
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