Home / Front Page/ Senasinghe says tax collection must move up to 20% of GDP

Senasinghe says tax collection must move up to 20% of GDP


Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 1 August 2017 00:34


International Trade State Minister Sujeewa Senasinghe said the “affluent class” of Sri Lanka should be brought under the tax net as the majority of these individuals were not paying their due amount to the Government.

Speaking at the 20th Annual General Meeting (AGM) of the Exporters’ Association of Sri Lanka (EASL), he pointed out that tax revenue as a percentage of GDP should move from 11% to at least about 20%.

“With the new tax laws we will be hit, especially the rich. It is only 11% when it has to be 20% and the bulk of it is not paid by us, the so-called affluent class. I know it is not easy but we have to face it and make difficult decisions,” Senasinghe stressed.

He emphasised the good governance that the coalition Government has brought into the system, noting that it was biting back with protests and all types of trade union action.

“People do not know what good governance is, they are just getting used to it. They think good governance is for any policy decision, for anything you can take union action and protest,” he added.

However, the Minister asserted that it was critical to make hard decisions, which may be unpopular.

The Minister also said that Sri Lanka was politically well ahead of a lot of countries from the region, which was an advantage for the country to attract Foreign Direct Investments (FDIs).

Noting that a lot of work has gone into drafting important trade-related policies and Government agencies, Senasinghe stated: “We are trying to get a blueprint by August so that we can get that involved in the next Budget. We started working on the export policy from January.”

He also acknowledged that China has chosen Sri Lanka as its second largest investor. “The Chinese Ambassador has pledged I believe $ 6 billion within about five to six years.”

The Minister said that the Government would do its best to meet the high expectations of the people and expressed confidence that Sri Lanka would be in a brilliant position in about another three to four years’ time.


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Maximum Residue Level: Dilemma of agricultural product exporters in Sri Lanka

Wednesday, 19 September 2018

Due to increased emphasis on consumer health, majority of developed countries such as EU, Japan and the US insist on MRL testing of food items which has to be done by the exporter. The Codex Alimentarius Commission which is an inter-governmental bod


East Container Terminal blunder: Learn from Chinese

Tuesday, 18 September 2018

Minister for Ports and Shipping Mahinda Samarasinghe informed the press in August that Cabinet has approved the development of East Container Terminal (ECT) of Colombo Port by the Ports Authority. According to approval: nPorts Authority would develop


President Sirisena, playing with fire, must take note that smoke will get into his eyes

Tuesday, 18 September 2018

Penchant for playing with fire President Gamaralalage Sirisena has always had a penchant for playing with fire. He did fire-play at the local government elections when he made a disastrous U-turn and went round country blasting the party and its lea


Response to claims that Sri Lanka was in a ‘debt trap’ in 2014 due to ‘Chinese loans’

Monday, 17 September 2018

Several Western analysts have carried out a relentless media campaign in keeping with their own geopolitical agenda, to suggest that China was luring Sri Lanka into a carefully engineered debt trap.


Columnists More