IMF mission says Lankan one-off taxes not effective

The International Monetary Fund (IMF) is to provide technical assistance focusing on more comprehensive reforms to streamline the tax system and put country’s revenue on steady path, an IMF official said in Colombo on Wednesday. The IMF and the government authorities during meeting here did not focus attention on a structural adjustment facility amounting to US$ 4 billion that was discussed during talks held in Washington recently by Finance Minister Ravi Karunanayake and Central Bank Governor Arjuna Mahendran, Todd Schneider, who led an IMF mission to Colombo, told reporters on Wednesday. However the mission highlighted several concerns on the interim budget including one-off tax measures to raise revenue. “The one – off tax measure introduced to finance the Interim Budget do not, in the mission view, constitute a step toward a more effective tax system,” Schneider said. Forthcoming technical assistance from the IMF will focus on these areas and a discussion on Post Program Monitoring by the IMF Executive Board is expected in late April, he disclosed. (Bandula)