To cover expenditure for 2021: Taxes should be increased twofold – Harsha
By Nabiya Vaffoor
Expenditure for the year 2021 is approximately Rs 5 trillion and approximately Rs 2.3 trillion of tax money will be needed to cover the expenditure. To find the funds, taxes should be increased twofold, Dr. Harsha de Silva said.
“The Budget of 2020 and 2021 will be debated in Parliament soon after the Appropriation Bills are submitted. Examining those Budgets emphasises the local concern of why we are unable to pay our international debts. According to the Appropriation Bills that were about to be submitted to Parliament, the expenditure for 2021 is Rs 4.9 trillion,” he added.
Dr. de Silva said to save the country from the black mark of being unable to repay debts, the Sri Lankan Government should consult the International Monetary Fund.
“Assuming there will be a 10 per cent Budget gap, still approximately Rs 2.3 trillion of tax money will be needed to cover the expenditure. When we peek into the reality from January- June 2020, only Rs 745 billion in tax was earned by the Government, for the whole of 2020 the tax that will be earned is Rs 1.3 trillion only. The Government needs to increase taxes twofold to find the funds,” he added.
Dr. de Silva said so yesterday (29), speaking at a Media briefing held at Samagi Jana Balawegaya (SJB) Headquarters.