Must remove taxes imposed on individual income – Gotabaya
Posted on October 16th, 2019
Courtesy Adaderana
The presidential candidate of Sri Lanka Podujana Peramuna (SLPP) Gotabaya Rajapaksa says he would restructure the government’s tax framework and bring VAT to 8 percent when he comes to power.
He stated this during an event held yesterday (16) with the owners of tea factories.
Pay As You Earn (PAYE) tax imposed on labourers and employees who earn middle-level salary scale must be removed, Rajapaksa stressed.
Meanwhile, addressing a public meeting held in Ratnapura Gotabaya said, under his administration, steps would be taken to stabilize national security by restoring the powers vested upon the intelligence services, which were removed by the incumbent government.
October 16th, 2019 at 3:28 pm
I agree. I have advocated for this for a long time.
But very unlikely it will be done. This will cost the government billions of dollars and sink the country further in the debt trap.
Gota has made too many ultra expensive election promises. Is he that desperate? I don’t think he should feel desperate. He can cruise to victory without any of these cheap promises.
I equate these to Volks Wagon, free Wi-Fi, free cars, etc. promise of Sirisena.
October 17th, 2019 at 3:07 pm
I agree with Dilrook.
EVERY CITIZEN must FEEL the responsibility for the upkeep of Govt through paying SOME TAX, no matter how small, according to a rate schedule tied to individual income level, with partial tax deductions based on individual burdens.
In the absence of such an INCOME TAX, people will demand Govt Benefits without feeling the BITE of their demands on their own income through the INCOME TAX.
The INCOME TAX, therefore, serves as an IMPORTANT FEEDBACK MECHANISM to thecitizen taxpayer to MODERATE and LIMIT their own DEMANDS to what the Govt can REALISTICALLY AFFORD TO DELIVER within the confines of the INCOME it derives from economic activity of the nation as a whole.
October 17th, 2019 at 7:00 pm
Agree with Ananda-USA.
No matter who it is, anything against the national interest is bad.
I agree with his argument on the responsibility part which most Sri Lankans badly lack. All must feel the need to prop up the nation that houses them without being parasites.
SL’s state revenue as a percentage of GDP has fallen since 1990s from 19% to 11%. On the other hand debt service as a percentage of state revenue has increased from 75% to 90% or 103%. Under these circumstances it is foolish to reduce taxes.
But I would still go for a large increase in the tax free threshold to say 10,000,000 rupees a year. Anyone earning below this need not pay income taxes. It will be offset by a wealth tax. Anyone with a wealth of over 20,000,000 rupees will be taxed. This includes property. This tax will be offset by any income tax they may pay. This will tax only the rich and force them to put their property to productive use. State should assign values to each postcode. Total value is 1 hectare value times number of heactares times number of floors.
It will not affect capital flight, income, state revenue and will tax anti-national elements clogging our highly expensive towns and cities more. It will also net crooks and the underworld who always evade tax. In addition, it will give the state the visibility into who buys land and what their intentions are.
Also tax all NGO inward remittances at 35%. This will give the state vital funds at the expense of anti-national elements! Confiscate all assets of separatists and extremists.
And tax all luxury motor vehicle by brand at international market price quoted by the manufacturer at 10% every year.
Increase old levies to reflect modern money value. Most levies and fines are hilariously outdated. Some must be raised by a million times. This is a joke. A brothel operator was set free after paying the fine of 50 rupees!
This will also force anti-national elements, terrorists and extremists to leave the country.
This way vital taxes can be earned without hurting the nation! Not by giving up tax and destroying the national economy.
But Gota or Sajith cannot do it for obvious reasons. We need a truly patriotic bold leader to do it.