SL HAS RELIED TOO LONG ON FOREIGN LOANS: IR CHIEF

Debt burden Rs. 12,300 bn; state revenue only Rs. 2400 bn

Cout that the country would soon be plunged into bankruptcy if the government failed to meet the targeted income needed to settle debts. He pointed out the need for an amended Inland Revenue Act as a result. However he stressed that the amendments passed at times had not met that requirement. “The new Inland Revenue Act was implemented in October 2017. Now we boast of prosperity in the country. However, the country would face bankruptcy very soon unless the targets are met. We depend on foreign loans to feed the nation. It is not possible to sustain this trend in the long run. Paying your taxes is not a responsibility but a duty. The people derive the dividends of the income tax paid to the government in many ways. An individual receiving an annual income of Rs.500,000 will be called upon to pay taxes. However, this has been misinterpreted by social websites as an act that does not spare even a beggar. It is a misconception that every citizen would be liable to pay income tax,” he said.

He further said only 1.8 million tax payers had been registered with the department and that he had cancelled the files of 500,000 of them who were not liable for taxation under the new act and pointed out that low income groups were entitled to relief after its implementation. ommissioner General of Inland Revenue Ivan Dassanayake said the country has relied too long on foreign loans which now amounted to Rs. 12,300 billion and that the total State revenue of about Rs.2400 billion was comparatively low, creating a huge shortfall in debt payments. He said the country needed Rs.700 billion his year alone for debt servicing.

Addressing a meeting convened to create awareness among tax payers regarding the Inland Revenue Act at the Grand Kandyan Hotel in Kandy, he pointed