Tax collection at provincial level

By Anurangi Singh

The government will set up new tax collection counters, on a provincial basis, to take on tax evaders and streamline revenue collection.

The collection counters will take the responsibility for revenue collection and other relevant matters in the provinces, a Finance Ministry spokesman, who wished to remain anonymous, told the Sunday Observer.

Finance Minister Ravi Karunanayake made a proposal to the Cabinet in this regard, last week. However, the spokesman said, the Ministry was still engaged in discussions with the Inland Revenue Department over the implementation of the plan.

“It will reduce the workload of the Inland Revenue Department by delegating its responsibilities. It will enable the Department to fast track its daily operations, without any additional responsibilities,” he explained.

The official added, although the government has made some progress on the tax collection front, measures should be taken to tie up certain ‘loose ends’.

“For instance, several high profile business personalities told the Minister, that there are many illicit dealings and understandings with the Inland Revenue Department to evade tax payments. Only a small percentage pays the expected taxes, while the rest either pay a very much lesser amount as against what they are required to pay, or not pay at all,” he said.

According to Ministry sources, it is expected that revenue income will increase with the establishment of the collection points. When contacted, state Minister of Finance, Lakshman Yapa Abeywardena said, discussions were currently under way in this regard, and that no final decision has yet been reached.