New Inland Revenue Act to ease tax burden of poor

The Government will forward several proposals to tackle the growing gap between rich and poor ensuring social justice for all, Finance and Mass Media Minister Mangala Samaraweera said.

“It is only a certain group that became richer as assets and wealth are concentrated among a few; while the poor have become poorer during the former regime.We have to end that culture while creating an economy where everybody will benefit and ensuring equal distribution of income and wealth for all,”Samaraweera told the media yesterday.

The richest 10 percent of the country receives 32 percent share of the country’s income at the moment while only one percentage share of income is received by one percent of the poorest people in the country, he said.

At least now, measures should be taken to narrow the rich-poor gap in the country. That is why the Government has proposed to introduce a new Inland Revenue Act with the objectives of simplifying and modernising our Income Tax law.We are trying to ease this tax burden on the poor while imposing a reasonable direct tax on rich and income earners.” he added.

“The Bill aims to reduce the indirect taxes levied from the people from 80 percent to 60 percent and increase direct taxes from 20 percent to 40 percent within the next three years,” he said.

With the reforming of the system, we will be able to create a strong foundation for the future while enabling to bring economic instability down,” he added.