Dhammika says for tax revenue bigger net is corporate, not individuals

Friday, 8 November 2013 06:53 - - {{hitsCtrl.values.hits}}

The success of increasing tax revenue via corporates and employees is greater than the focus on individuals, according to top business leader Dhammika Perera. This facet was emphasised with data by Dhammika during his speech at the packed Business Today Top 25 awards ceremony on Tuesday night at the Hilton Colombo attended by Ministers, MPs and captains of the private sector. “It is not feasible to enhance Government revenue simply by increasing the number of individual income tax payers, since at present the country has only around 180,000 individual income tax files which yield around Rs. 7 billion in revenue,” Dhammika said. To make a big impact on Government revenue, Dhammika – who is linked to ownerships in at least three award-winning companies, Sampath Bank, Hayleys and Vallibel One – said it was the corporate sector that has the biggest role, through corporate taxes and also PAYE taxes, which at

present has around 540,000 contributors. “By increasing its investment footprint and creating employment, the corporate sector can play a major role in supporting Government revenues and make a significant contribution towards making Sri Lanka a high income country,” Dhammika said in his acceptance speech of the award for 7th ranked Sampath Bank, of which he is the Chairman. The recommendation was made in the context of Sri Lanka’s quest to avoid the middle income trap and graduate to a high income nation, which is described as a key item in the economic agenda of the country. “The Government has already taken the initiative in setting the foundation for this. Significant investments have been made towards developing infrastructure to world class standards, enhancing the skill endowment of the labour force and improving the quality of higher education with a focus on applied research,” Dhammika said. According to him, it was the responsibility of the corporate sector to take advantage of this foundation and build on it. “There are tremendous opportunities for investment in new business ventures, thereby creating employment and expanding the economy. This will in turn support Government revenues, which is an important macroeconomic priority,” Dhammika added.