Respect and recognise the taxpayer

“Taxation is the price which civilised communities pay for the opportunity of remaining civilised.”

According to a recent newspaper article, the Commissioner General of Inland Revenue has confirmed that there are only 500,000 individual taxpayers registered in the country. The present Government has imposed very heavy taxes removing most of the concessions given to individuals leaving some middle income earners helpless in managing their home budgets. As civic minded citizens, willingly or unwillingly these taxpayers have kept their necks to the chopping board in trying to save the country from a disastrous economic peril. 

Taxation is a must and is part and parcel of any fiscal policy of a country, but the Government in implementing tax policies should ensure that such taxes are reasonable and equitable. Unfortunately, it is the taxpayers who are already paying tax that are pressurised by the IRD, whereas thousands of people, new rich, deal makers and others who mint money and lead luxury tax-free lives are moving freely in society without being in the tax net.

As a devoted taxpayer for the past 50 years and paying a couple of millions as my annual tax, I am sad to say that most of the time the taxpayer is treated and considered as a common criminal by the IRD, the fault being that they have paid taxes to the Government. One generally loses his or her self dignity at the IRD being treated in this manner, a taxpayer is never trusted by the IRD and is harassed. Albert Einstein has said, “The hardest thing in the world to understand is the income tax.” This is absolutely true in Sri Lankan context, as an ordinary person cannot understand the complexities of our tax laws and returns; adding insult to injury, is the RAMIS system which only an IT guru can understand. Some time ago, when I was at a discussion with an official of the IRD, he himself admitted that our tax returns are so complicated that even he found it difficult to fill them and comply. I quote from Alfred E. Neuman: “Today, it takes more brains and effort to make out the income-tax form than it does to make the income.” … How true?

The time has come and is the opportune time for the Government and the officials of the IRD to change their attitude towards the taxpayers to treat them with dignity. At least now, the Government and the tax authorities should give the due recognition and respect to these taxpayers as saviours of the nation. A taxpayer deserves better treatment especially at the IRD without harassment and with dignity, for they are the sons and the daughters of this country who are contributing to the State coffers to pay the salaries of the Government servants and for the development of this country to balance the economy.

The Government should launch a program to respect and recognise the taxpayers in keeping the economy afloat, by issuing Gold/Platinum/Bronze loyalty cards depending on the annual taxes they pay, and offer them special prioritised recognition and treatment at Government departments, hospitals, airports and other places. May be even offer a few additional eligible points for their children’s admission to schools and universities (I have no interest in school/university admissions), so that a taxpayer will feel that they get something in return by way of recognition in society.

Sariputhra,

Colombo 05