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| State Minister of Finance Ranjith Siyambalapitiya
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State Minister of Finance Ranjith Siyambalapitiya yesterday emphasised that paying taxes is a matter that needs to be handled with consideration in light of the challenging economic climate, adding that it is the responsibility of the entire country to keep the poor alive.
His emphasis comes amidst growing opposition to what some view as unprecedented taxation whilst the new Inland Revenue Amendment Bill was challenged in Court yesterday.
Noting that over 3.9 families or 57.7% of the 6.8 total numbers of families in the country are relying on Government handouts for their livelihood, he asserted that printing bills are not an option amidst the ongoing economic crisis, where food inflation can reach as high as 100%.
“There are 6.8 million families in our country and of that, over 1.7 families receive Samurdhi allowance, a total of 416,867 additional families receive an elderly allowance and 72,000 receive disability grant. In addition, over 1.3 million families are on the waiting list for Samurdhi and other Government handouts. The receiving 39,150 families are receiving more aid.
“Against this backdrop, over 3.9 families or 57.5% of all families expect Government support for their livelihood. Thus, by paying the due taxes to the Government, the citizens are helping to keep the underprivileged alive,” he explained.
The State Minister of Finance said the overall State revenue in September was Rs. 171,453 million with taxes accounting for 92.8%, while the monthly recurring expenditure was Rs. 297,655 million. The gap between the Government’s total income and recurrent expenditure is 173%. In September, the total State expenditure was Rs. 406,609 million, which is 237% higher than the total earnings.
Pointing out that in a normal situation, the Government could have generated revenue by simply imposing taxes and by printing money, he said as a result of the ongoing economic crisis, money printing is impossible — leaving taxation as the only option.
“We recognise that even taxpaying citizens are having difficulties right now. All the Government can do now is to levy taxes, review them whenever possible, implement certain flexible and relief measures to ensure Sri Lanka moves on collectively leaving no citizen or group behind,” Siyambalapitiya said.
