Harsha lobbies Govt. to further revise Inland Revenue Bill

Tuesday, 13 December 2022 01:34 - - {{hitsCtrl.values.hits}}

Says 36% high taxes contributing to intensified brain-drain of late
Insists alternate ways can collect expected revenue, whilst protecting hard-hit middle class professionals
Describes how Govt. can collect set tax revenue by opting for alternate methods proposed by COPF
Questions Govt.’s rationale to bloat ministerial portfolios further when economy is declared bankrupt

MP Dr. Harsha de Silva

Main Opposition MP Dr. Harsha de Silva is calling on the Government to further revise the Inland Revenue bill on behalf of all professionals and to resolve the intensified brain-drain of late.

“Many professionals and associations representing various fields including healthcare, IT, engineering, architects, and professors have written to us asking to cease the proposed tax burden on them, especially considering the economic crisis. Higher taxes as much as 36% is actually contributing to the brain drain of this country,” he said.

The third reading of the Inland Revenue (Amendment) Bill was passed in Parliament last Friday with 79 MPs voted in favour whilst 36 voted against.

Noting that only after the Committee on Public Finance (COPF) refused to approve the proposed personal income tax amendment, he said the Finance Ministry came up with a comparative tax scheme to generate the target revenue of Rs. 68 billion.

“After analysing data provided by the Finance Ministry and looking at the Indian tax model, it is quite evident that we are able to utilise the Indian tax schemes of 5%, 20% and 30% slabs and still generate Rs 62 billion which is just Rs. 6 billion short of what the Government expects from their 6%, 12%, 18%, 24%, 30% and 36% income tax,” he pointed out.

He said this way it will certainly give the middle income earners that the President Ranil Wickremesinghe used to be very concerned of, some breathing space.

Dr. De Silva also described how the Government could still achieve the set target income avoiding the shortfall of Rs. 6 billion.

“There are numerous ways to find the deficit of Rs. 6 billion. One way is to collect at least Rs. 2 billion from casinos that have evaded taxes and the other is by cutting down on all non-essential sectors,” he explained.

He argued how reasonable for the Government to have 38 State Ministers and 20 Cabinet Ministers in an economy that is declared bankrupt.

“We have large Government comprising nearly 60 MPs and they want it to further expand it to 70 with 10 new appointments. How can the Government even explain the rationale of these appointments knowing that our economy is bankrupt and telling public to fasten their belts only?” Dr. De Silva asked.

He asserted that there are alternate ways to gain expected revenue, while protecting the hard hit middle class professionals of this country.

“I urge the Government to look at the alternate method proposed by the technical team of the COPF,” he said.