Tuesday, 23 July 2013 00:56
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By Cheranka Mendis
It is time for the private sector to wake up from the deep snooze it is currently in to ensure that it supports the country’s development agenda, Finance and Planning Deputy Minister Sarath Amunugama said at the launch event of Holcim Lanka’s Sustainable Development Review 2012.Even with a low tax regime, the sector is “not doing enough,” the Deputy Minister said, sending out a warning that it is time for the sector to wake up and take responsibility.“Today, the private sector must wake up. It is sleeping and not doing enough,” he stated. “This is a warning for the private sector – they must wake up, be more responsible, must invest and partner with the Government that is investing so much in infrastructure development.”Assuring that public-private partnership is vital for development, Amunugama said: “We have been supporting the private sector and frankly I must say, whatever it has been over the last couple of years, in the next three to four years, you can look forward to much more substantial investments in Sri Lanka.”As support to the private entities, Sri Lanka currently holds the record as the country with the lowest tax regime in the region, both on corporate taxes and individual personal income taxes. Citing France as an example, he noted that the corporate taxes are so high in the country that leading business icons have now opted to become citizens in Russia, just to avoid the high taxes imposed. In Sri Lanka, however, it is high time the private sector wakes up and realises that they have a low tax regime, Amunugama said. “Money is not given to the private sector to squander it and have a good time, have campaign parties and buy Lamborghinis; money must be invested forthwith in Sri Lanka. This is the only way in which we can maintain a low tax regime. Otherwise, the demand will come for a different type of taxation,” he warned.
See also Page 9
