Harsha skeptical of VAT reductions pledged by GR

Thursday, 24 October 2019 01:14 - - {{hitsCtrl.values.hits}}

Argues public revenue shortfall makes 8% VAT unrealistic
Says promised reductions misleading public

By Ashwin Hemmathagama – Our Lobby Correspondent

Tax cuts proposed by Sri Lanka Podujana Peramuna (SLPP) presidential candidate Gotabaya Rajapaksa to reduce Value Added Tax (VAT) to 8% from the current 15% received heavy criticism yesterday in Parliament, with Government lawmakers arguing that such statements were tantamount to misleading the public.

Highlighting the possible revenue loss of Rs. 450 billion if VAT is reduced from 15% to 8%, Non-Cabinet Minister of Economic Reforms and Public Distribution Dr. Harsha de Silva said: “These false promises mislead the public. The country can only be developed by bringing in foreign investments. It is the Rajapaksa regime, which introduced the 20% VAT. The current Government is unable to bring the VAT down despite its willingness.”

Dr. de Silva also criticised the presidential candidate’s plans to artificially control the exchange rates. “Political decisions should not be made in terms of exchange rates. Rupee should not be controlled by politicians. In the right mind, Gotabaya should come out with a mechanism to appreciate the exchange rate,” he added, claiming to have plans to increase exports in order to bring in foreign revenue.