Why not overhaul tax collection methods?

Civil society group, the Purawesi Balaya organisation says the government should overhaul the tax collection system in a bid to increase state revenue.

Speaking during an event in Hatton, co-convenor of the Purawesi Balaya organisation Saman Rathnapriya said at present, 96% of the state’s revenue is generated through taxes.

He said out of the tax income, 94% of the income is generated through tax imposed on the income of businessmen while only 6% of the revenue is generated through VAT and the PAYE tax.

Saman Rathnapriya added out of the 2,000 individuals who are engaged in major businesses, a majority avoid paying adequate taxes.

He said the country’s present tax revenue is Rs. 1.6 trillion; however noted the state should earn about Rs. 3 trillion through tax income.

Co-convenor of the Purawesi Balaya organisation Saman Rathnapriya added the annual loss of tax revenue is larger than the loss incurred by the state from the bond scam and the thefts that occurred during the tenure of Mahinda Rajapaksa-led Government.