ECONOMYNEXT – Sri Lanka’s new income tax law will provide a more stable tax framework that giving more certainty for investors, State Minister for Finance Eran Wickramaratne said.
A revamped income tax bill is to be presented to parliament shortly.
"There will be an opportunity for debate and discussion," Wickramaratne said. "But after it is passed it will give some predictability to the tax framework. Investors need certainty to make long term decisions."
The proposed law will reduce the discretion of the finance minister to make ad hoc decisions and all tax changes will go through parliament, he said.
He said no one liked taxes, but the government needed revenues to provide services.
The long term intention was to keep value added taxes and income taxes and phase out others, simplifying the framework.
The government was at the same time working to reduce waste and make the public sector more effective.
E-procurement is being introduced to make state purchases more transparent and reduce costs.
E-procurement will reduce the discretion available for politicians and bureaucrats to interfere in procurement, Wickramaratne said.
Corruption stems from discretion. (Colombo/June19/2017)