The Inland Revenue Department (IRD) plans to recover Rs. 12 billion in taxes owed by tax payers in the next two years. It will grant some relief for tax defaulters by allowing them to repay their dues in installments. The government has directed the IRD to net in tax defaulters without fear or favour as the state needed such revenue for development work after restoring peace in the country.
A special unit has been assigned to identify business entities that evade taxes, according to the Commissioner General of Inland Revenue, Mahinda Medagoda in an interview with the Sunday Times FT. He appealed to all tax payers to honour their commitment to direct this revenue towards development.
The IRD plans to change the ratio between indirect and direct taxes from 60/40 % to at least 40/60 % to increase tax revenue, he said. The Department has collected a sum of Rs.140 billion from tax payers during the first six months of this year while the target for the year is Rs. 312 billion.
The tax collection process will be streamlined and expedited to meet this year’s target with the assistance of the IRD staff he said. He noted that he has delegated powers to the newly appointed Additional Commissioner General and Deputy Commissioners to take collective action to improve tax collection. Seminars will be conducted countrywide by the department to create awareness on taxation and the responsibilities of taxpayers as well as concessions granted to genuine taxpayers.
He said that genuine taxpayers with gold and silver cards issued by the department have been given several concessions including, housing loans and leasing facilities for purchase of vehicles and office equipments at reduced interest rates from Peoples Bank and the Bank of Ceylon. Action has also been taken to establish cordial relations between the Inland Revenue Department and tax payers. He said that only 700,000 tax files have been maintained at the IRD and action has been taken to open more tax files by creating awareness and motivating Inland Revenue officers to collect direct taxes to boost the national economy. |
E-mail