Harsha de Silva on the inequality of the local tax system

COLOMBO (News 1st) - A seminar on the budget highlights of 2019, tax proposals and its impact on business and economy, organised by the Institute of Certified Management Accountants of Sri Lanka was held in Colombo this morning (March 11). Speaking at the event Non-Cabinet Minister of Public Distribution and Economic Reforms, Dr Harsha de Silva, commented about the recently presented budget 2019. He questioned that although they may have received a few more votes than before by attempting to please everyone that a fact to be considered is how it is going to impact upon the medium term/long term sustainability of this country. He continued to say although our country has a revenue of 10.8% of GDP that no country can run with such a revenue. Dr Harsha de Silva said that the country is still at a level where 80% is earned through indirect tax while it is only 20% from direct tax. He further claimed that it is the direct component of tax that should be increased unlike what is happening in the country by taxing essentials used by the poor people who have to spend more money on essentials as a result. He added that a proper plan should be generated without which this country cannot survive. Panel discussions with the participation of senior government officials, business leaders, academics and experts from the sectors of economy taxation, business, banking, and industry was also held during the event.