INSUBCONTINENT EXCLUSIVE:
Gajendran says Sri Lankas failure to meet tax profits targets despite tax hikes is due to the tax leaks stimulated by tax evasion.Joining
Ada Deranas current affairs program @HydePark, Gajendran even more revealed that digitalization of proceedings of the Inland Revenue
Department (IRD) will significantly contribute to boosting efficiency while also eradicating loopholes which help with tax evasion.All the
taxes have gone up, however were still struggling to achieve 13.9% to 14% tax profits
Next year, 2025, were wanting to reach 15%, which is still below what we achieved in the early 90s, 22% tax to GDP ratio
The majority of the countries, even developing nations attain 18% - 22% taxes, Gajendran mentioned.If you wish to have macroeconomic
stability, when we think about an industrialized country, tax to GDP ratio need to have to do with 28% - 30%
Now we still have this gap
Were collecting so much from people and were still falling short
Next year, at our best, well reach 15%
We had 22% before, in 2022
Where is this 5% - 7% space? Im informing, that is the evasion and scams and corruption, he added.This money is not with the small taxpayers
It is with the huge taxpayers
Reforms can not occur when it is corrupt
If higher-ups are corrupt, all subordinates will be corrupt, as the previous President stated, Gajendran emphasized.Meanwhile, Tax
Consultant, Attorney-at-Law Suresh Perera revealed that tax evasion is most often committed by top tax payers and not those in the lower tax
brackets, although they have actually been at the centre of attention when drafting tax legislation.Commenting relating to the matter,
Perera emphasized the tax leakage exists due to inappropriate enforcement of laws, repeating that the tax leakage occurs due to evasion by
leading tax payers.The law is there, however its not been followed
What is happening in here is that now the focus is on little man, perera added.Furthermore, he stressed that policymakers focus on
individual tax payers, stressing that the policies ought to be made focusing on big corporations, from which a huge tax revenue is being
collected.Watch the complete programme above
