News
Govt plans Revenue Authority to monitor underperforming IRD, Excise dept, Customs
ECONOMYNEXT – Sri Lanka is in the process of creating a Revenue Authority and the 2024 budget is likely to announce it to monitor the three key state income collecting bodies due to their poor performance, sources who are aware of the new move said.
A Parliament Sectoral Oversight Committee on National Economic and Physical Plans has said the government’s tax collection is far behind the target due to the lethargic attitude of the three main state revenue collecting institutions: Inland Revenue Department (IRD), Excise Department, and the Customs.
The government has estimated a revenue target of 3.1 trillion rupees for this year, but as of September 26, the collection has been only 1.64 trillion rupees.
Officials say the government is likely to face a 637-billion-rupee or 20.5 percent shortfall in revenue if the current collection trend continues.
The International Monetary Fund (IMF) has estimated a 15 percent shortfall in revenue but has asked the government to expand the tax net.
“The next budget will announce the Revenue Authority which will monitor all three revenue collecting institutions,” a source who is aware of the budget told EconomyNext on condition of anonymity.
“The major issue is inefficiency and corruption in all three revenue collectors. The new Authority will try to accelerate tax collection through finding solutions for the current delays.”
The official data showed that only 161 Company Income Tax (CIT) files, 8,533 Individual Income Tax (IIT) files, 14 Partnership files, 104 Value Added Tax (VAT) files, and 2,094 Social Security Contribution Levy (SSCL) files have been opened in the first eight months of this year.
The Parliament Sectoral Oversight Committee led by Mahindananda Aluthgamage MP recommended establishing a body to monitor and regulate all three state revenue collecting institutions.
Government officials have said an internal resistance to implement the Revenue Administration Management Information System (RAMIS) acquired from Singapore has resulted in the government losing billions of tax collections.
“Unfortunately, we need to create such a monitoring authority because the government is not reaching its targets and we need to find the reasons. We know some tax officials don’t like this because they might lose their side businesses. But this time, we have no choice,” another government official said.
Ratnapura District SJB MP Hesha Withanage yesterday tabled several documents in Parliament to substantiate his allegations against Sri Lanka Cricket (SLC). He presented an Executive Committee meeting minute, claiming that according to it, payments to IGP Deshabandu Tennakoon had been approved.
The MP said that the SLC Executive Committee had appointed Tennakoon, the then Senior Deputy Inspector General (DIG) of the Western Province, as an Advisor to the Security Consultant of Sri Lanka Cricket.
The contract, effective from August 16, 2021, included a monthly allowance of Rs. 150,000, 200 litres of fuel per month, a Rs. 5,000 mobile phone allowance, a laptop, a mobile phone, and medical insurance, MP Withanage told Parliament.
The MP tabled the document in the House in response to SLC’s recent denial of his claims. The SLC had previously dismissed allegations that Tennakoon had been paid or provided with perks, calling them baseless and false.
The SLC denial came after Withanage, commencing the Committee Stage budget debate under the Head of Expenditure of the Ministry of Youth Affairs and Sports, claimed on Tuesday (18) that IGP Tennakoon had been on the payroll of SLC.
MP Withanage criticised the government, stating it had no intention of preventing the accused group from contesting the upcoming SLC election on 31 March. He also accused the current Sports Minister of supporting a corrupt faction within SLC and announced plans to take legal action over the matter.
“This denial by SLC is irrelevant,” Withanage said. “We have a copy of the report approved by the Executive Committee.”
By Saman Indrajith
Election Commission (EC) Chairman R.M.A.L. Ratnayake yesterday announced that the Local Government (LG) elections would be held on 6 May 2025.The date was revealed during a special media briefing following the conclusion of the submission of nominations for LG polls.
Nominations for 336 LG institutions, which began on 17 March, were officially closed at 12:00 noon yesterday. Additionally, the deadline for placing deposits ended at midnight on 19 March.The EC said 17,296,330 persopns were eligible to vote in this year’s LG elections.
by Ranil Dharmasena
The Sri Lanka Navy conducted a successful shipwreck expedition from 10 to 17 March focusing on historically significant shipwrecks located in the sea area off the coast of Colombo.
The expedition was carried out to document the current state of numerous shipwrecks lying beneath the waves, off Colombo. The survey included the Coal Wreck, Chief Dragon Car Carrier, MV Astoria, MT Nilgiri, Thermopylae Sierra, MV Pecheur Breton, Taprobane East Wreck, SS Worcestershire, Toilet Barge, SS Perseus and some other unidentified wrecks, according to the Navy.
Navy divers explored a series of shipwrecks, including the historically significant SS Worcestershire and SS Perseus, both sunk during World War I. Beyond their historical value, the wrecks of the Chief Dragon Car Carrier and Thermopylae Sierra are now functioning as thriving artificial reefs, providing habitats for a variety of marine species.
A total of 14 diving officers and 15 diving sailors participated in this intensive shipwreck expedition. They used both atmospheric air and nitrox air mix as breathing agents, depending on depth and dive duration. This enhanced safety and efficiency, particularly for deeper and more complex dives.
Showers above 50 mm can be expected at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts.
‘Deshabandu is on SLC payroll’; Hesha tables documents
LG polls on 06 May
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