Moody’s welcomes new tax law

Tuesday, 12 September 2017 00:00 - - {{hitsCtrl.values.hits}}

Moody’s Investors Service hailed the newly-passed Inland Revenue Act aimed at broad-basing the country’s tax frame work.

“Sri Lanka’s newly-revised Inland Revenue Act, which was passed by Parliament on 7 September, will augment the country’s very low level of government revenues by replacing the existing law with a more efficient, modern and broad-based tax framework,” Moody’s Investors Service Sovereign Risk Group Vice President William Foster said in a statement.

He also said that through past additions of multiple tax exemptions Sri Lanka’s income tax efficiency and tax collection were weak relative to other sovereigns. The general government revenue-to-GDP ratio was only 14.3% in 2016, one of the lowest among B-rated sovereigns. The reforms of the Inland Revenue Act offer prospects of higher revenues.

“The implementation of revenue reforms that foster long-term fiscal consolidation will be critical to shoring up Sri Lanka’s credit profile, which is weighed down by the country’s large debt burden and relatively weak debt affordability,” the statement said. (CD)

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.