ISSN: 1391 - 0531
Sunday October 14, 2007
Vol. 42 - No 20
Financial Times  

Why tax only the private sector? Tell us Commissioner General

We are writing with reference to the two thought provoking articles published in The Sunday FT of September 23 and 30. Firstly we should congratulate the Central Province Tax Payers Association for highlighting this most draconian piece of legislation which discriminates one section of the citizens of this country.

Some months ago we wrote to the Commissioner General of Inland Revenue requesting him to declare if the Chief of the Inland Revenue Department of Malaysia is exempt from paying income tax and also if government officials are also exempt from paying personal taxes.

This was in response to an article by our Tax Chief stating that Malaysia has the same population of Sri Lanka but there are over three million tax payers in that country. The answer was no answer – only a deafening silence.

To our knowledge nowhere in the democratic world is such an unfair fiscal system adopted. Our close neighbour India who we always take as an example does not practice such a discriminatory system. If all our politicians/top public officials who receive over and above the tax free threshold are requested to have a tax file and pay income tax as other citizens do, the number of tax files will no doubt increase and with that tax on undeclared income too.

This will naturally have a positive effect in the reduction of corrupt practices and will increase the much needed revenue.

If not for the straight-forward former Auditor General the VAT scam would not have surfaced and the culprits would have gone scot- free. Had there been tax files for Tax Department officials that alone would have served as a deterrent. The tax chief has threatened to open tax files for doctors, lawyers, etc and for persons who go abroad. This is a good idea but will only be so if activities of all public officials too are monitored including his own officials. Is he aware about the number of overseas tours done by the VAT suspects of his department? Does he know about the public officials who undertake so many trips abroad and how such trips are financed … the number of houses, estates and vehicles they own?

We wish to stress that with huge salary increases and perks such as duty free vehicle permits, official cars with fuel and drivers, reduced interest on loans, land at concessionary rates, free telephones, pension for life etc., the list goes on and on for public officials, it is most unjust to target the slogging private sector which contributes much by way of direct/indirect taxes to provide a better future for politicians and top public officials.

There should be only one tax policy and that is – all persons irrespective of the position they hold should pay income tax as done in civilized societies the world over.

It is now upto the private sector to organize themselves into a group to fight this injustice perpetrated upon them and ensure an equal fiscal policy to all citizens of this country.

We would like to suggest that the Central Province Tax Payers Association calls for a meeting of like minded persons or organizations for discussion on this discriminatory policy.

A group of
Disgusted Tax Paying Citizens
of Sri Lanka

 

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