In a resolute stance against illicit financial practices, the State Minister for Finance, Ranjith Siambalapitiya, underscored the need for stringent law enforcement to eradicate the trade mafia operating outside the purview of the Inland Revenue Department (IRD).
The minister conveyed this message during his participation in a special Value Added Tax (VAT) awareness conference at the Ministry of Finance on January 9th.
The event, organized by Saman Ratnapriya, the Director General of Presidential Trade Unions, aimed to enlighten civil society activists, government officials, political activists, trade union leaders, and journalists on VAT-related matters.
State Minister Siyambalapitiya elucidated the government's strategic plan to expand the tax base as part of broader economic reforms. Anticipating a surge in direct tax percentage, he outlined ambitions to elevate it from the current 30% to 40%.
In addressing the gathering, he emphasized the shared challenges faced by individuals across various economic strata amid declining incomes and rising expenses.
Acknowledging the prevailing economic hardships, Siyambalapitiya asserted the government's commitment to an ongoing program aimed at addressing the country's issues. Recognizing the pivotal role of increased government revenue in fostering economic development, he underscored the importance of expanding the tax base.
Furthermore, the State Minister reiterated the government's unwavering stance against the trade mafia, which exploits legal loopholes to amass undue profits through unregistered transactions with the Inland Revenue Department. In addition to these measures, he hinted at potential reductions in indirect taxes in the future, signaling a comprehensive approach to economic reform.
