‘Paramount importance that public demand accountability over money raised as taxes’

Local corporate sector raised concerns with regard to transparency and accountability of government expenditure and called on the government to communicate to the general public, businesses alike about the whole concept of increasing taxes.

It is of paramount importance that the general public, businesses, and professionals demand accountability for the money to be raised as taxes in Sri Lanka, Lanka Tiles PLC- Managing Director, Mahendra Jayasekara said.

“When the government tries to raise taxes, it is the duty of the government to explain to the general people as to why taxes are being raised and for what purpose taxes would be used.

If not professionals, academics will be compelled to migrate. People don’t like to be pick pocketed; but they would willingly take the wallet out and give money to various people for various purposes.” Jayasekara told a webinar on ‘Inland Revenue Amendments Bill’, organised by CMA Sri Lanka.

Emphasising increased taxation is essential given the current economic situation due to drastically fallen government’s revenue mainly attributed to ill planned taxation policies, implemented over the last decades, Jayasekara added that the government has not been successful in taxing people who ought to pay taxes properly in the country.

If the government is making transparent and pragmatic attempts to increase the tax base, Jayasekara explained that the government needs to bring those who dodge paying taxes into the tax net rather than imposing various taxes on the same set of taxpayers.

If that happens, he said the effect on increased taxation could be mitigated at least for a certain period.

Despite many wastage, Jayasekara noted that the government revenue by way of providing free health, education and many others has also brought benefits to Sri Lankans.

He said, “I am not arguing about the rate or the amount of tax to be paid, it’s about communicating to the public about the benefits of the increased taxation and most importantly how it contributes to the economic growth overall.”