Sunday May 19, 2024
Sunday May 19, 2024
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President Ranil Wickremesinghe
President Ranil Wickreme-singhe has highlighted the importance of financial discipline in the process of nation-building and has announced plans to implement formal measures to regulate public spending and generate additional government revenue. This announcement was made during the presentation of a report by a committee chaired by State Finance Minister Ranjith Siyambalapitiya on Wednesday, which proposed strategies for generating new sources of income for the Government. President Wickremesinghe expressed concern over the neglect of public revenue and unrestricted spending on non-beneficial activities, which has contributed to the country’s economic crisis.
“In the current economic crisis, a major concern is the improper collection of tax revenue. Some individuals and entities who are obligated to pay income tax fail to do so, leading to a significant shortfall.”
“Additionally, there have been reports of the Government experiencing delays in receiving complete tax revenue from customs, as well as similar accusations regarding excise duty,” he added.
To address this issue, the President informed that several committees have been established in Parliament to examine the State’s financial situation and income tax matters.
“We have extended an invitation to Francis Maude, who served under Prime Minister
David Cameron has substantial expertise in this area, to visit Sri Lanka and share his insights on sectoral reform,” he said.
President Wickremesinghe attributed the current financial problems to the lack of parliamentary discussions on this matter in the past two or three years. To address this issue, he informed that several committees have been established in the parliament to examine the State’s financial situation and income tax matters.
The report presented by State Minister Ranjith Siyambalapitiya includes recommendations aimed at establishing a structured framework to achieve revenue goals for key departments such as the Inland Revenue Department, Sri Lanka Customs, and the Excise Department. It also proposes the implementation of new approaches to boost State revenue and the creation of a digital economic infrastructure to support these initiatives.
President Wickremesinghe directed the State Minister to engage in further discussions on these proposals and present them to the Parliamentary Committee on Ways and Means.
“We must explore new avenues for increasing income tax revenues, as outlined in the report. This aspect has received significant attention within our Parliament. It can be argued that the lack of Parliamentary discussions in the past two or three years, along with a lack of interest in certain cases, has been a primary cause of the economic crisis. To address this, several inquiry committees on income tax and the fiscal situation have been established. It is within these activities that we should seek out these new approaches,” he added.
He emphasised the importance of leveraging digital technology to its fullest potential in implementing these recommendations. The President also stressed the need to inform the public about these initiatives through an extensive media campaign.
During the event, President Wickremesinghe highlighted the improper collection of tax revenue during the current economic crisis and insisted on the necessity of establishing comprehensive financial discipline in the country.
He also acknowledged the lack of Parliamentary discussions and interest in this area, which has contributed to the economic crisis. The President mentioned the establishment of inquiry committees on income tax and the fiscal situation to address these challenges and explore new approaches.
President Wickremesinghe also expressed gratitude for the preparation and presentation of the report.
He emphasised the importance of streamlining existing sources of income, introducing new ones, and ensuring minimal burden on the people.
The State Minister highlighted the need to expand the tax base, close gaps in the tax net, and enhance Government revenue through improved competitiveness and transparency.
The event was attended by State Finance Minister Shehan Semasinghe, Presidential Senior Advisor on National Security and Chief of Presidential Staff Sagala Ratnayaka, Presidential Secretary Saman Ekanayake, Presidential Senior Advisor on Economic Affairs Dr. R.H.S. Samaratunga, Acting Secretary of the Ministry of Finance R.M. P. Ratnayake, and other officials.
