Posted on 05.13.2018 by Chandana Sirimalwatte in Local News with 0 Comments
The government has decided to relax some of the taxes imposed on general public due to massive protests by the suffering people.
Accordingly, the 5% withholding tax on the interest of children’s savings accounts will be revoked and a decision has been taken to amend the tax on the authors share of publication income. Minister of Finance and Mass Media, Mangala Samaraweera has mentioned that authors’ income of up to Rs.50,000 per month and up to Rs. 500,000 per year will be released from tax.
It has also been decided to lift the withholding tax from children’s bank accounts until they are 18 years old, Finance Minister Mangala Samaraweera has told while addressing the meeting held at the Finance Ministry.
At present, 88% of the government tax revenue is levied from the general public as indirect taxes, while only about 12% of the tax revenue is levied directly from businessmen as direct taxes. The Minister said that the new Inland Revenue Act is aimed at increasing direct taxes to 40% and reducing indirect taxes to 60%.
The left parties emphasized the necessity of participating awareness discussions and building a collective opposition to unfair taxation. Similarly the trade unions and other mass organizations have raised their voices against it. Even in future, It would not be easy to lift the unfair taxes imposed on the people, without a protest against it.