New IRD Act is investor-friendly, says Finance Minister

The main objective of the new Inland Revenue Bill is to simplify the tax system in the country in order to create an investorfriendly environment that will attract more foreign direct investments in the near future, says Minister of Finance and Mass Media Mangala Samaraweera

During a discussion with representatives of the trade unions of the Inland Revenue Department (IRD) this week at the Ministry, the Minister said that the present tax system in place is complicated and that investors find it difficult to understand.

Therefore, he said that the new Inland Revenue Bill will broadbase the tax system and incorporate globally accepted new tax principles to deal with international cross border relations, according to a media release issued by the Ministry.

The Minister invited the employees of the IRD to submit their proposals and to discuss any other issues faced by them. He further stated that he was prepared to consider the trade union’s concerns in order to enhance the tax revenue of the Government.

The trade union representatives briefed Minister Samaraweera on certain administrative and technical issues in the department. They cited the lack of local and foreign training opportunities for IRD officers and apprised the Minister on issues faced by them with regard to the payment of incentives. They also stressed on the need for a new building for the Head Office of the IRD.

Although tax revenue has decreased since 2011, the Government has been able to increase national revenue via increased tax collection to reach an all-time high in the recent past due to new policies adopted by the Government.

Deputy Secretaries to the Treasury, Ms. G.D.C. Ekanayake and S.R. Attygalle; Director General of Fiscal Policy A.K Senevirathne, Director General of the Inland Revenue Department Ivan Dissanayake along with officials from the Ministry of Finance and the Inland Revenue Department were also present.