Minister G.L. Pieris enjoying the
tea party while giving an ear to his colleague Karu Jayasuriya. Treasury Secretary
Charitha Ratwatte in the far corner serves the ADB representative.
Essential consumer items and services adversely affected
VAT worse than GST LSSP
|The Budgetary Proposals
Mr. Speaker, there has been a steady decline in the tax revenue to GDP ratio
during the past few years, while the complexity of the tax regime has increased
considerably due to ad-hoc and inconsistent policy measures. Taxpayers are faced with a
whole host of different taxes such as NSL, GST, Customs Duties and Stamp Duties, often on
the same transaction. Moreover, the implementation of ad-hoc policy measures and the grant
of unplanned concessions and exemptions have made the task of tax administration virtually
impossible. The tax system has also failed to meet the revenue needs of the Government.