MP Aluthgamage enters crusade against tax defaulters

Sri Lanka Podujana Peramuna Kandy District MP Mahindananda Aluthgamage told Parliament that he will submit his assets and liabilities statement to Transparency International and invited other MPs to do so.

MP Aluthgamage proposed to increase direct taxes by changing the tax system and also to reduce indirect taxes.

He further said that in other countries, legal action is taken under the criminal law for those who do not pay taxes. But in Sri Lanka, there is no action against those who do not pay taxes.

Aluthgamage said that there should be a system for regulating the Chartered Accountants.

“If government revenues are properly managed, an 80 percent solution to the economic crisis can be achieved. The Income Tax Department is the main source of revenue for the government.The MP alleged that there are supermarket chains, sheds and various other businessmen who do not pay taxes to the government properly. If the taxes are managed correctly, the state income can be increased up to Rs.4,000 billion.”he stressed.

He further said that the country’s population is 22 million and only 137 persons paid income taxes above five million rupees and there were only 3,020 value added tax files.

Sri Lanka had 5.8 million households and there were 293,305 tax files in 2020 and 120,000 had filed returns in 2021. About 58,000 had paid tax.

Of the total 28,621 individuals had paid less than 10,000 rupees, 22,368 had paid 100,000 rupees or less, and 5,493 had paid 500,000 rupees or less, Aluthgamage told Parliament.

Of the rest, 1,456 persons had paid Rs.10 million rupees or less. “Only 137 persons had paid taxes above Rs.5 million.”