Finance Minister apologises; explains need for VAT increase

Finance Minister apologises; explains need for VAT increase

Finance Minister apologises; explains need for VAT increase

Written by Tharushan Fernando

04 Jun, 2016 | 8:09 pm

Finance Minister Ravi Karunanayake on Friday apologised or increasing the rate of  the Value Added Tax.

The minister made this apology while delivering the Charted Management Accountants, Founder’s Day Oration in Colombo.

Minister of Finance, Ravi Karunanayake noted:

Two leaders of two great political parties have merged their thinking into one policy and that policy is driven today by a strong national government. But due to the nature of democracy there are delays that are sometimes unacceptable to people.

He pointed out that many of the surveys done in the chambers, and the government in the recent past, have shown that it is not tax policies that are wanted, it is not tax breaks that are wanted, it is consistency and coherence of government that is required.

“This is one of the area our new government and President Maithripala Sirisena and PM Ranil Wickremesinghe are trying to address”,  said the Finance Minister who charged that sometimes there have been “unprofessional approaches” ( “including from professionals such as me”) but had to be grappled  due to certain political realities that are coming forward. But now it is getting into a more coherent nature, where policy changes are less but what is being done would last for the next couple of decades, said the Finance Minister.

“We are looking at changing the archaic policies and laws that are there, one classic example would be the exchange control” pointed out Minister of Finance who further noted that this is something which is archaic, unwarranted and draconian in nature and it is not to be amended, it will be repealed. ++

“I know that there are too many taxes. There are 42 taxes and levies we will ensure that these are reduced,. I am sorry we have to impose things like VAT,” stated Minister Karunanayake who pledged that this economy will be steered to a  much stronger economy in the next couple of months.

Latest News

Are you interested in advertising on our website or video channel
Please contact us at [email protected]