Connect with us

News

Govt. urged to crack down on tax evaders instead of taxpayers, says MP Harsha de Silva

Published

2 years ago

on

Harsha Silva

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.


Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

Heat Index at ‘Caution level’ in the Western, Sabaragamuwa, Southern and North-western provinces and in Anuradhapura, Mannar, Vavuniya and Monaragala districts

Published

3 hours ago

on

2026/03/26

By

Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of  Meteorology
at 3.30 p.m. on 25 March 2026, valid for 26 March 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in
Anuradhapura, Mannar, Vavuniya and Monaragala districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry
of Health in this regard as well. For further clarifications please contact 011-7446491.

Continue Reading

News

US dodges question on AKD’s claim SL denied permission for military aircraft to land

Published

4 hours ago

on

2026/03/26

By

President

By Shamindra Ferdinando

A spokesperson for the US Embassy in Colombo declared that the United States and Sri Lanka maintain a long-standing defence partnership, grounded in transparency, mutual respect, and shared interests.

The official said so in response to The Island query regarding President Anura Kumara Dissanayake’s recent bombshell disclosure, in Parliament, that his government declined to allow the US Air Force to use the Mattala Rajapaksa International Airport, following the eruption of the latest West Asia war.

We sought views of the US on President Dissanayake’s claim against the backdrop of Sri Lanka being a party to the Acquisition and Cross-Servicing Agreement (ACSA) since 2007. Sri Lanka extended the ACSA in 2017, for another 10-year period, and its extension comes up next year.

The President revealed that the US had requested permission to use Mattala, between 04 and 08 March.

Claiming that the request had been made on 26 February, two days before the war began, President Dissanayake said that the US had sought to land two aircraft, carrying eight anti-ship missiles, but that the request had been turned down to maintain Sri Lanka’s neutrality. The President revealed that the aircraft were to come from a US base in Djibouti.

The US embassy pokesperson explained that questions related to operational movements, including ‘Operation Epic Fury’, should be directed to the Department of War (DOW) in Washington.

Camp Lemonnier is the primary base of operations for US Africa Command in the Horn of Africa. China, too, has its only overseas military base in Djibouti in the vicinity.

Military sources said whatever various interested parties said about US-Sri Lanka relations, the former provided significant intelligence support during last phase of the conflict that enabled the Navy to hunt down floating LTTE arsenals in international waters. Of the eight LTTE vessels sunk, the US backed four hits with specific intelligence, sources said.

Continue Reading

News

No decrease in remittances from workers due to Gulf conflict, but significant drop in tourist arrivals – CB Governor

Published

4 hours ago

on

2026/03/26

By

CBSL Governor

Sri Lanka’s worker remittances had not seen a decrease despite the ongoing conflict in West Asia, Central Bank (CBSL) Governor, Dr. Nandalal Weerasinghe said yesterday.

“Based on currently available data, they have not seen a decline in remittances. In fact, according to that we have observed, is a slight increase in remittances in the past few days, ” the Governor said at a media conference held at the Central Bank head office in Colombo.

Governor Weerasinghe also mentioned that he had not seen any reports about Sri Lankans returning to the country from the Middle East due to the ongoing conflict.

The Central Bank Governor, however, acknowledged that there had been a decrease in tourist arrivals. He confirmed that tourist arrivals had decreased by around 17 percent due to the current volatile situation in the Middle East.

Meanwhile, the Central Bank of Sri Lanka has decided to maintain the Overnight Policy Rate (OPR) at the current level of 7.75%, following its latest Monetary Policy Board meeting.

By Hiran H Senewiratne

Continue Reading

Trending