Proper system needed to charge taxes for non-cash benefits - COPF Chairman | Daily News

Proper system needed to charge taxes for non-cash benefits - COPF Chairman

Committee on Public Finance Chairman and Member of Parliament (Dr.) Harsha De Silva recently emphasized that a system should be implemented to collect taxes properly on non-cash benefits starting from the President of the country to all Ministers, Members of Parliament and officials.

He pointed out that non-cash benefits include benefits such as vehicles, houses, servants, etc. owned by a person holding a certain position, so these taxes should be collected correctly after considering all of them.

The Chair stated above, when the Inland Revenue Department was recently (10) summoned by the Committee on Public Finance to discuss the Road Map for Tax Collection for the year 2023.

The Inland Revenue Commissioner General pointed out during the discussion that the amount of tax collected in the year 2022 is Rs. 860 billion and the amount of tax expected to be collected for the year 2023 is Rs. 1,667 billion in amount. Accordingly, compared to last year, it is expected to receive more tax money amounting to Rs.922 billion this year, he said.

The highest amount of expected tax revenue in 2023, which is Rs.603 billion, is to be received through the corporate income tax. The inland revenue officials also pointed out that an income of Rs.553 billion is expected from the value added tax (VAT).

The committee also discussed at length the strengthening of this tax collection program and the Department of Inland Revenue briefed the issues including the delay in the cases in the court related to tax payment defaults. The committee Chairman said that the COPF will intervene to review these problems and provide solutions.

Accordingly, the chairman of the committee informed the Inland Revenue Department to report to the committee in February about the progress of tax collection.

The attention of the committee was also drawn to some media reports that taxes were levied on the pension of disabled war heroes. The officials of the Inland Revenue Department pointed out that no such tax is levied on a pension in any way.

The regulations in Gazette No. 2307/12 under the Import and Export Control Act were also submitted to the committee for approval. This gazette was published to ease the import restrictions imposed on sports items, railway spare parts, and certain items in the cosmetics industry.

The committee which approved the gazette said that instead of allowing the import of the products required by the industries, under the recommendations of the relevant institutions, it is appropriate to allow the import by charging a certain high tax. Otherwise, it was discussed in the committee that black market businesses cannot be prevented.

Furthermore, the Committee approved the orders under the Foreign Exchange Act published in Gazette No. 2308/51.

State Minister Hon. (Dr.) Suren Raghavan, Members of Parliament Anura Priyadarshana Yapa, Chandima Weerakkodi, Sahan Pradeep Withana and Madhura Withanage were present at the Committee meeting.

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