IRD, customs should be more people friendly - PBJ

The government will introduce a simple and effective tax system based on the findings of the taxation committee.

Addressing the budget seminar organised by the Inland Revenue Department (IRD), Economic Development Ministry Secretary Dr. P.B.Jayasundera said that the present tax system is complex and outdated while the focus is narrow and discourages investors.

Most importantly, it does not generate the required revenue nor does it encourage people to save.

Dr. P.B.Jayasundera

The tax system should encourage and motivate people to pay taxes rather than harass them.

Dr. Jayasundera was of the view that radical changes are needed at the IRD and the Department of Customs to make them people-friendly organisations motivating tax payment.

The government is now becoming an enabler supporting all citizens to become partners in the growth and development of the country.

There was no enabler in the past the environment was not conducive to think of other issues other than the conflict.

Now is the time to change and correct shortcomings.

The Government has initiated several infrastructure projects for the benefit of the people and investors while it has opened opportunities for investment.

All these investments will put our country on par with other developed countries.

Dr. Jayasundera said that Sri Lanka can maintain a 6 percent growth but it is not sufficient.

He was of the view that within the next 3-4 years growth should increase to 8 percent and then further increase to a double digit growth.

After the global crisis the focus is on Asia and countries such as India and China are growing at over 10 percent.

Therefore we should accelerate investment, savings, to reach the required growth and ensure that the per capita income increases to US$ 4,000.

Commissioner General,IRD K.M.S.Kandegedara said that the IRD is making radical changes to make the department people-friendly.

He said that accountants are the people who connect the IRD and the laymen. Therefore they should always be professional and encourage the taxpayers to pay dues on time without deliberately delaying payments.

Speaking of corporates he said that compliance is less than 50 percent.

Officials of IRD visited 950 institutions of which 650 have closed down, but the IRD was sending the returns as it was not informed of the closures.

The reason for all this is the distance between the IRD and the taxpayers.

He said many steps are being taken to make the visit to the IRD comfortable.

SG