State Minister of Finance EranWickramaratne made these comments at a press briefing held today (24th Aug.) at the Department of Government Information. It was held to discuss about the New Inland revenue Bill which is to be presented in Parliament tomorrow (25th Aug).
State Minister Wickramaratne said that in the past,concessions were given in an ad hoc manner. Now the government wants to create social equality. Therefore, the government would reduce the indirect taxes to 60 percent from the current 80 percent. In addition the direct taxes will be increased from 20 to 40 percent. He said that in countries such as Malaysia the indirect tax is 30 percent while the direct tax is 70 percent.
He said that indirect taxes will be reduced within the next three to four years.
He also added that the new act will be simple, transparent and will reduce the decision making power as everything will be specified.