Sri Lankans open 46,000 new tax files over past month: Minister
May 23, 2018 06:19 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lankans have opened 46,000 new tax files over the past month, Finance Minister Mangala Samaraweera said.
"People are now coming forward willingly to open tax files, recognizing their responsibility," Samaraweera said.
In Sri Lanka taxes are decided on a class basis. The private citizen class generally pays a higher volume of tax than the state worker and ruler classes.
The single largest tax volume paid by a private citizens pays is when they purchase a car or motor cycle, which are taxed up to 200 percent.
A state worker however get a tax slashed car every so often, a member of the elected ruling class get a completely tax free car.
When Sri Lanka brought back capital gains tax, the elected ruler and state worker class has been exempted from capital gains on tax slashed their vehicles.
The current administration also brought back progressive taxation for persona income tax, ending a 16 percent proportionate tax. The highest slab for personal income tax is now higher than some of the corporate income tax rates.
Advocates of high employment say progressive taxation, a tool of European socialists, kills capital and investment unlike indirect taxes which are charged on consumption.
Countries that have low or no income tax, like some of the Middle Eastern nations have employment several times their population.
"A heavy progressive or graduated income tax (Starke Progressivsteuer)," was one of the key demands of the Communist Manifesto of Karl Marx along with central banking (Chapter II: Proletarians and Communists.)
"Centralisation of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly. (Zentralisation des Kredits in den Händen des Staats durch eine Nationalbank mit Staatskapital und ausschließlichem Monopol) (Colombo/May23/2018)