Minister queries tax reduction strategies for sustainable Govt revenue

Labour and Foreign Employment Minister Manusha Nanayakkara questioned parties proposing tax reductions about their strategies for Government revenue. He emphasized that unless they plan to sell the gold stolen from households back in the day, it would be challenging to find sufficient funds to run the Government without taxes.

The Minister mentioned that tax increases are reluctantly implemented to prevent the current economic crisis. The Government and the President make such decisions with the aim of attaining the development goals of the country, beyond narrow political objectives.

Minister Nanayakkara expressed these views during the inauguration of the Jayagrama Sri Lankan programme, held at Bogambara Stadium in Kandy on Saturday.

The Minister said: “Sri Lanka is known for its hospitality and willingness to make donations. We are a nation that always helps each other. We even treat prisoners with good hospitality, as exemplified by the case of Robert Knox.

“Despite being a nation that has a history of making donations, paying taxes has become a significant issue in the country. What are taxes really used for? The only way to secure funds for free healthcare, national security, and free education is through taxes.

“Today, some oppose the imposition of taxes. We had to increase taxes due to the prevailing economic situation. So, if someone claims that if they come into power, they will reduce taxes, we would like to ask them how they plan to provide all the State services without imposing taxes. Will they fund these services through the sale of gold goods that were taken from homes at that time?

“When a Presidential Election is around the corner, increasing taxes is a very disadvantageous thing for us. This is because when taxes are increased, all the people who have to pay taxes, including Government officials, become upset with us.

“However, we made these decisions to prevent this country from falling apart again. Regardless of the political disadvantages of these decisions, the President has taken them to develop the economy and ensure there will be no more economic collapse in the country.

“Government revenue from taxes has exceeded expectations this past month, generating a surplus of Rs. 300 billion for the Treasury. The President has proposed keeping this surplus as a reserve fund, in case the Central Bank is unable to print money.

“The President could have used the surplus of Rs. 300 billion for political gain by reducing taxes or distributing the money among the people. However, he chose to prioritise the country’s welfare and keep the money in reserve. We expect similar surpluses in the coming months and aim to maintain a reserve of Rs 100-150 billion.

“Since British colonisation, our nation has grappled with the loss of some of its former skills, abilities, and sense of national unity. Gaining independence did not alleviate these challenges, as we have continued to face divisions based on race, religion, caste, and regional disparities. These factors have contributed to a sense of national fragmentation that can be referred to as the ‘75-year curse’.

“Since gaining independence, Sri Lankan leaders have consistently strived to build the nation. However, those who criticise these leaders were previously supporters of them.

“The time has come for us to make decisions without fear of losing votes. We don’t want to spend money on political rallies and bringing people by bus. All we want is to lift our country from where it has fallen. We all have to start within ourselves. Only then will we be able to become a developed nation. Consider this: ‘Let’s begin with me’.

“The President has allocated funds from the President’s Fund to provide vocational training to ten thousand youths, aiming to create a talented generation for the future of the country. Additionally, under the ‘Garu Saru’ programme, selected individuals working in the informal sector in Sri Lanka will be provided with NVQ certificates, with the initiative aimed at ensuring the safety and dignity of informal sector workers in the country.

We are introducing smart boards to establish smart classrooms, ensuring that the next generation is well-prepared for the modern world. To transform the country into a developed nation by 2048, it is crucial to strengthen our children and workers today. As our country relies primarily on human resources, we are dedicated to developing and enhancing our human capital.”

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