2018 Income Deficit of the Inland Revenue Department is Rs. 1.3 trillion

2018 Income Deficit of the Inland Revenue Department is Rs. 1.3 trillion

2018 Income Deficit of the Inland Revenue Department is Rs. 1.3 trillion

Written by Zulfick Farzan

04 Dec, 2020 | 11:41 am

Colombo (News 1st);  According to the Official Facebook page of the Sri Lankan Parliament, it was disclosed before the Committee on Public Accounts (COPA) on 2nd December, the 2018 income deficit of the Inland Revenue Department is Rs. 1.3 trillion.

The officials representing the Inland Revenue Department said the majority of the income deficits were to be paid by government institutions and an independent board has determined that some of these institutions are currently not in a financial position to pay the relevant revenue.

Accordingly, the Committee recommended the Income Revenue Department to submit a full report on these institutions.

The Auditor General’s Department pointed out another reason for this substantial deficit of revenue was due to 8060 dishonored cheques worth Rs. 3 billion.

The Inland Revenue Department officials pointed out a blacklist inclusive of 65 taxpayers has already been prepared.

Officials stated that since the beginning of 2017, the Inland Revenue Department has utilized a computerized system called RAMIS to streamline tax collection process which has been more efficient than conducting the process manually.

However, Members of the Committee pointed out it is problematic that more than Rs. 3 billion should be paid again to a Singaporean company every time a tax amendment is made to the said system which was established at a cost of over Rs. 4 billion.

Therefore, Minister Duminda Dissanayake suggested that an agreement on tax amendments should arrive for a one-time payment mechanism with the company.

Secretary to the Treasury and Ministry of Finance S. R Attygalle pointed out that a five-year continuous, consistent tax policy was proposed by this budget for the practical convenience of taxpayers as well as tax collectors.

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