Sixty percent not paying taxes - Ravi | Daily News

Sixty percent not paying taxes - Ravi

Sixty percent of the affluent class are not paying taxes, Finance Minister Ravi Karunanayake said adding that he Budget 2016 will make life easy for all, especially the fixed wage earners.

The minister said the government has no intention to burden wage earners.

"In terms of taxation, the rich who evade will be compelled to pay taxes while those who are compliant will not be burdened. Sixty percent of the affluent do not pay taxes. Accordingly, the economy needs to be properly structured, reformed and strengthened," Karunanayake said adding that Budget 2016 would be one exercise.

The minister noted that 65 percent of the annual revenue is swallowed by the recurrent expenditure of the public sector salaries (Rs. 600 billion) and pension cost of Rs. 170 billion.

"If you analyse the budget cost in a different way, out of the annual revenue of Rs. 1,400 billion, Rs. 1,300 billion (93 percent) has to be incurred for debt servicing," Karunanayake said.

The minister also revealed that the government will link the subsidies with employment. Sri Lanka spends about Rs. 220 billion annually on subsidies alone.

"According to a survey those depending on subsidy have become lazy and the government intends to transform them in to a productive work force," he said. 


 

There are 4 Comments

Introduce a minimum wage limit before taxation even for government workers. any one who exeeds the minimum wage limit will have to pay tax according to their earnings. It could be introduce as a percentage. For example, If 40,000 is the limit without tax, someone who earns 50,000 will have to pay tax for the 10,000. Please do something like this.

Tax money should be utilized for betterment of population. Govt spends on luxury vehicles and other unproductive activities resulting in low payment of taxes. We are happy to pay the taxes if ourv hard -earned money is used wisely by policy makers.

Tax money should be utilized for betterment of population. Govt spends on luxury vehicles and other unproductive activities resulting in low payment of taxes. We are happy to pay the taxes if ourv hard -earned money is used wisely by policy makers.

FIRST PARLIAMENTARIANS AS POLITICIANS. ALL SRI LANKA.65% OF POPULATION POLITICIANS.

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