"You need at least 60,000 to survive these days" - Harsha questions rationality of tax policy

COLOMBO (News 1st) - Chairman of the Parliament Committee on Finance, SJB MP Harsha de Silva on Sunday (23) questioned the Government's newly implemented tax policy. 

Speaking at a press conference, the MP pointed out that poverty in Sri Lanka is 14.3%, which is dangerious as only 3 million people were poor in the country when the Rajapaksas initially took over Sri Lanka, now, 9.6 million people have fallen into poverty.

Only now the Government says that they cannot do anything, Dr. de Silva said, adding that now tha the income tax bill has been introduced, taxes will start from those who earn an income of Rs. 100,000 and onwards. 

"You need around 60,000 Rupees just to survive these days; so you need at least 100,000 Rupees to cover all expenses." he said. 

Dr. de Silva pointed out that a person who runs a small and medium scale shop has been hit with a tax of 14% on the profit, which now increases to 30%.

Next, he said, exporters have incurred a tax of 14%, which will increase to 30%. Why are we levying 40% on casinos when exporters are levied 30%? is this the best tax increase that can be caried out? the MP further stated.

Citing incidents such as the sugar scam, the MP questioned whether it is reasonable to hit the average small and medium businessmen, the exporters, and the middle class executives, who are being taxed, while others are being given tax exemptions.

He also questioned whether taxation is the only solution, and whether the cost incurred by the Government to appoint Cabinet Ministers cannot be reduced. 

"38 ministers have been appointed. I heard that 10 more are going to be appointed? There are already thirty in the cabinet. Look at the cost. If this is the kind of burden you put on the people, then everyone has to make sacrifices," he added.