IRD’s inability has led govts. to extract unbearable taxes from professionals, honest people
The government can reduce taxes imposed on professionals, Chairman of the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis, MP Gamini Waleboda has said.
The MP has said professionals earn salaries, which cannot be compared to profits.
“A person who makes Rs 350,000 a month is now subject to a tax of 36 percent. Then there is inflation. They can hardly maintain the lifestyles they enjoyed, and this compels them to leave
the country. The level of brain drain is scary,” he has said.The Committee is expected present several proposals to the government on reducing taxes for professionals.
Walebodahas said that the Inland Revenue Department (IRD) is entrusted with expanding the tax net, but is unable to meet the targets due to inefficiency and a chronic shortage of personnel.
“It has been late in adopting new technology. I think we all know about what has happened to Random Access Management Information System (RAMIS) that IRD started to implement in 2012. This was to automate the tax system. There has been a 400% cost overrun. Moreover, it takes 30 minutes to register a new tax payer,” he said.
The incompetence of the IRD, which has deprived the government large amounts of potential tax revenue has compelled governments to extract unbearable taxes from professionals and honest businesses, the MP has said.
“We need to make the IRD an efficient institution soon.”