New income tax will lead to greatest brain drain in SL history: AKD

Wednesday, 18 January 2023 01:17 - - {{hitsCtrl.values.hits}}

Says imposing heavy taxes on the people while ‘economic criminals’ responsible for crisis remain unpunished is unjust
Claims professionals with better options abroad have remained in SL due to their consideration for country and its people
Admits people must make sacrifices to revive country but says such sacrifices can only be justified if those who caused the economic collapse are punished
Calls on Govt. to rethink policies that would lead to significant brain drain

By Maneshka Borham

NPP leader Anura Kumara Dissanayake

National People’s Party (NPP) leader Anura Kumara Dissanayake warns the newly imposed PAYE tax will lead to the greatest brain drain Sri Lanka has seen in its history.

Speaking in parliament yesterday, the NPP leader said it was unjust to impose a heavy tax burden on the people as those who caused the economic collapse remain free without consequence.

Dissanayake called on the Government to rethink its recent policy decisions which would lead to a significant brain drain in the country.

“The people today are facing the consequences of the economic policies consecutive Governments have followed, giving rise to the current situation. The burden of these decisions had fallen squarely on the people. The VAT which was 8% has been increased to 15% and a new Social Security Contribution Levy of 2.5% has been imposed. A 30% tax has been introduced for companies while the tax on the profits earned by exporters has also been increased to 30%,” he said.

The NPP leader pointed out that the tax burden on the people has increased at a time that inflation is at an all-time high and there are many job cuts.

“Our opinion is that the imposition of taxes at a time such as this is unjust. While the people are being burdened by these taxes, those responsible for the deterioration of the country’s economy are writing books about it. For the first time, the UNHRC noted that economic crimes have been committed in Sri Lanka,” he said.

While admitting that the people too must make some sacrifices to ensure the revival of the country, Dissanayake said the country will not be able to overcome the crisis without public support.

“But these sacrifices can only be fair if those who committed these economic crimes are duly punished. Imposing taxes on the people when those who destroyed the economy and stole public monies remain free is unfair,” he said.

“From this month onwards the PAYE tax on private sector employees has seen a significant increase. Out of our labour force, only 15% are professionals. This labour has a significant demand around the world which offers better salary scales, better quality of life including better education and health facilities. But as those who benefitted from the free education system, they continue to work in Sri Lanka despite having better options,” the NPP leader noted.

Dissanayake said the Government has now imposed an unbearable tax on them.

“This is not a fair tax. While having a demand in other countries they have remained in Sri Lanka due to some consideration for the country and its people. A majority have planned their lives according to their salaries. For example, many have taken housing loans, vehicle loans and education of children,” he said, adding that the Government now cannot prevent the greatest brain drain in the country’s history from occurring.