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

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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.



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Sun directly overhead Madampe, Thorayaya, Thotagamuwa, Rattota and Kalavanchikudy about 12.09 noon today (03)

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The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.

The nearest places of Sri Lanka over which the sun is overhead today (03) are Madampe, Thorayaya, Thotagamuwa, Rattota and
Kalavanchikudy about 12.09 noon.

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22A: SC urged to suspend hearing, appoint full bench

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Attorney-at-Law Sugandhika Fernando, on behalf of the Vinivida Foundation, petitioned the Supreme Court yesterday (02), seeking a full bench, excluding Chief Justice Preethi Padman Surasena, to hear the petitions challenging the 22nd Amendment Bill. She also requested that the hearing be suspended immediately until the matter was fully heard and determined.

Among the respondents are Chief Justice Surasena, the first respondent, and Attorney General Parinda Ranasinghe. Justices Yasantha Kodagoda, Shiran Gooneratne, Achala Wengappuli and Priyantha Fernando have also been named as respondents.

The petitioner has sought to have quashed the decision of the first respondent to appoint a five-member bench, which she alleged was made in violation of the norms of public law. She also sought a bench comprising all Supreme Court judges, excluding those cited as respondents, to hear the special determination applications on the 22nd Amendment.

The petitioner further contended that Chief Justice Surasena, who is due to retire on December 1, 2026, would be the main beneficiary of the 22nd Amendment.

The hearing of the petitions continued for a second day yesterday (02) before a five-member Supreme Court bench comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli, Arjuna Obeyesekere, Sampath Abeykoon and Gihan Kulatunga.

The hearing, which commenced on Tuesday morning, continued for nearly 12 hours, until 10:30 p.m.

Solicitor General Viraj Dayaratne, appearing for the Attorney General, submitted yesterday that the Government had presented the 22nd Amendment Bill to the Constitution and the Judicature (Amendment) Bill with the objective of expanding and streamlining the country’s judicial system.

After the Solicitor General’s submissions concluded, counsel representing the petitioners requested an opportunity to respond to the Solicitor General and the intervening petitioners. However, the Chief Justice declined to allow the petitioners’ counsel to make further oral submissions, concluded the determination hearing and directed them to file written submissions instead.

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Govt. seeks NATO assistance

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AVM Thuyakontha meets Admiral Giuseppe Cavo Dragone

Sri Lanka has formally requested assistance from the North Atlantic Treaty Organisation (NATO).

According to a press release issued by the Defence Ministry, Defence Secretary Air Vice Marshal (retd) Sampath Thuyakontha has discussed defence cooperation with NATO, with discussions focusing on military modernisation, advanced technology, cyber capabilities and disaster response.

This was during talks between AVM Thuyakontha and NATO Military Committee Chairman Admiral Giuseppe Cavo Dragone on the sidelines of the Chiefs of Defence Conference in Victoria, Canada.

During the meeting, Secretary Thuyacontha outlined Sri Lanka’s defence requirements and areas of interest, including the modernisation of military hardware, acquisition of advanced technologies, and strengthening cyber capabilities and surveillance platforms, the Ministry of Defence said in a statement.

The two sides also discussed opportunities for greater technical cooperation, including the exchange of military personnel, expanded education and training programmes, and increased sharing of expertise and information.

Humanitarian Assistance and Disaster Relief (HADR) was also identified as an area for potential cooperation. The discussions included the exchange of expertise and the effective use of unmanned aerial vehicles (UAVs) in disaster response and related operations.

Defence Secretary Thuyacontha invited NATO to further strengthen its engagement with Sri Lanka, emphasising sustained dialogue, information sharing and practical cooperation in areas of mutual interest.

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