MP Harsha De Silva, the chairman of the committee on public finance, has urged the implementation of a mechanism to systematically collect taxes on all non-cash incentives given by the president to all ministers, MPs, and officials.
The MP stated that non-cash benefits include any employees, homes, vehicles, and other property possessed by someone in a specific job and that taxes should be thoroughly examined while taking all factors into account.
The MP stated his opinions when the Committee on Public Finance recently called the Inland Revenue Department to examine the Road Map for Tax Collection for the year 2023.
Tax revenue was Rs. 860 billion in 2022, according to the Inland Revenue Commissioner General, while Rs. 1,667 billion is expected in 2023.
According to him, taxes are expected to rise by Rs. 922 billion in 2023 as compared to 2022.
The Commissioner General further stated that corporate income taxes are anticipated to generate the majority of tax revenue in 2023.
Revenue authorities noted that they expect the value-added tax will generate Rs. 553 billion in revenue (VAT).
The Department of Inland Revenue offered information on a number of topics, including the delay in court proceedings linked to tax payment defaults, as the Committee considered enhancing the tax collection programme.
According to MP De Silva, the COPF will step in to address all issues and offer answers.
As a result, the committee chairman requested that the Inland Revenue Department update the committee on the status of tax collection in February.
The committee was also made aware of media allegations that claimed crippled war heroes’ pensions were taxed, despite denials from IRD officials.
The Import and Export Control Act’s regulations, published in Gazette No. 2307/12, were also forwarded to the committee for approval.
The import limitations placed on sporting goods, railroad spare parts, and particular cosmetics products were loosened as a result of the publication of the gazette.
The committee accepted the gazette and emphasised that, on the advice of the appropriate institutions, it is preferable to permit the import of goods needed for sectors like tourism and cosmetics by levying a higher tax.
