TAXING TIMES When a country that is home to some 8.5 million working people has less than 500,000 taxpayers to show for it, the writing must surely be on the wall. Likewise, according to some estimates, the number of registered businesses in Sri Lanka is around 6.3 million, of which not even 100,000 are tax registered!

It is in such a milieu that the bona fide taxpayer – a clear minority, let it be said! – is being asked to fork out even more, be it in the form of income or corporate tax, or the dreaded value added tax (VAT).

Meanwhile, the authorities are urging taxpayers to blow the whistle on tax cheats and we wonder whether they themselves will be doing the same – meaning, report their friends and associates who are among the big fish in this game of Russian roulette.

At the same time, the increase in the VAT rate by three percent (to 18%) is having ripple effects with many traders and retailers resorting to unscrupulous pricing mechanisms – some are reportedly not registered for VAT but ‘adding value’ to their invoices!

The government says it is taking steps to create a tax paying culture when it’s widely believed that little if anything is being done to stop corruption (especially within the ranks of the lawmakers, for crying out loud!) despite ‘corruption vulnerability’ being earmarked by the IMF as one of the burning issues that need to be addressed under its Extended Fund Facility (EFF) framework.

So the New Year dawned with a noose around the necks of the citizenry while our politicians continue to run amok by blatantly flouting the laws that they themselves enact. The fact that only a dozen or so of the 225 members of parliament have reportedly declared their assets to date bears testimony to the abuse that we, the people, turn a blind eye to… and have done so for decades.

And to add insult to injury, in this election year, we will be asked to vote for the very same people – in the name of ‘democracy’!

So a nation with untold potential continues to be on the brink of yet another crisis as 2024 unfolds, with ballot papers flying around like there’s no tomorrow… pun intended!

– Editor-in-Chief