Financial Times

Taxation Commission to 'simplify' the tax structure


The government will appoint a Taxation Commission in a bid to 'simplify' the tax structure, according to Sumith Abeysinghe, new Secretary to the Treasury. Addressing the budget seminar organised by the Institute of Chartered Accountants of Sri Lanka recently, he said this will be done soon.

Central Bank Governor Nivard Cabraal told The Sunday Times FT on the sidelines of the seminar that this new commission will be set up before the end of the year. Mr. Cabraal noted that the government is looking at an oil bill of US$ 3.5 billion next year. "These are challenges. The thrust of the budget is to ensure that exports are given a boost."

Deputy Chairman of the Ceylon Chamber of Commerce (CCC), Anura Ekanayake noted that the public policy has to be geared towards both the revival of the agricultural economy and also the exports. Chandra Jayaratne, a former CCC Chairman, commenting on “What Business and Professionals must do in the next 14 months” noted that business and professionals must begin to practice effectively “Enterprise Risk Management”. “Beginning immediately with risk assessments, risk identification and profiling, grading risks according to priorities based on probability and severity, develop mitigation strategies and action plans need to be implemented with accountability,” he said.

He also noted that arising from the recent economic and financial market crisis led recessions, job losses, reduced consumption spends, and ill-liquidity in developed markets along with lower aid and grants to developing economies, especially Tea, Rubber, Coconut, Tourism, Port/Aviation Services will affect the country. N.R. Gajendran, Partner of the tax consulting firm, Gajma Company Ltd noted that there is procedural red tape at the IRD when submitting tax returns. "You must accept the returns when a person submits it even if it is a blank sheet of paper," he said.

He asked the crowd how many had the experience of being turned back by the IRD when they went to submit their returns, on account of the submission being wrong, etc. To this more than half the room had their hands up, while Ms. Lakmali Nanayakkara, Partner KMPG who was at the head table also put her hand up. Mr. Gajendran was seen lifting both his hands up, evoking much mirth from the gathering.
"The basis of malpractice and corruption is because there is only one person at the IRD looking into 'all' the taxes. This is like the temple till being robbed," he added.

Top to the page  |  E-mail  |  views[1]
Other Financial Times Articles
“Didn’t go for best hedging option” – CPC
Rising costs, economy hurt profits at Dialog
Budget taxes will not raise prices of essential goods
Lanka IOC loses Rs 218 mln amidst heavy taxes, hedging
CBEU gets injunction against Seylan
The Sunday Times FT survey on best investment options
Hedging against oil futures
Dialog going thro’ tough times but says this is cyclical
CPC clearly understood the risks- SCB CEO
Colombo bourse dragged down after early gains
Inflation seen falling to 17-18% by December-CB
Marketers often underestimate consumers - study shows
‘G-nee’ provides info in a jiffy
Kuwait airline’s privatisation on track for April
Bussiness brief
Indian banks smug as banking crisis rolls past
Iraqis measure progress with flip of switch
Brazil to host biofuels meeting as crisis threatens industry
Oil trading slightly lower in Asia
U.S. bans melamine-tainted Chinese dairy products
INSEAD Leadership Summit discusses global financial crisis
YESL to recognise heroes of Sri Lanka’s economic success
Government sets up 64 ICT facility centres - Nenasalas - in the East
Affno e-Government showcased at GITEX
South Asia ready for Infrastructure Investment - MTI
Impact of the financial crisis on developing countries
MTD Walkers moves into global markets with new tea roller
Standard Chartered Bank launches FlySmiLes co-branded credit card
Private tea factory owners thank government
NComputing appoints Bartleet Electronics as distributor in Sri Lanka
Emirates struggling, half-year profits down 88%
Success through eco-friendly products
Tea traders say industry is bracing to meet challenges
World Bank says North-East projects progressing well
World’s most expensive Bone China tableware
Hemas holding strong against interest rates, lower rupee
Threats facing the garment industry
Impact of cess on agricultural commodities
Taxes taxing quality of life in Sri Lanka
Inland Revenue urges professionals to pay taxes
Taxation Commission to 'simplify' the tax structure
Tourism industry pleased with Budget


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2008 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution