The Ministry of Finance, Economic Stabilisation, and National Policies has planned to make it mandatory for all those entering politics and the staff of Ministers to open tax files, said State Minister of Finance Ranjith Siyambalapitiya.

Speaking to the media yesterday (6), he said that the Government would take steps to make it mandatory for those entering politics, including Local Government representatives, to open tax files. In addition to politicians, he said that the staff of Ministers would also be required to open tax files in the future.

He also said that although the opening of tax files has been made mandatory for 14 groups that have been identified as those who can afford to pay taxes through a circular that was recently issued by the Inland Revenue Department, it is not mandatory for such groups to pay taxes.

Speaking further, Siyambalapitiya said: “The indirect and direct tax rates stood at 80% and 20%, respectively, when the incumbent Government was appointed. Through the tax reforms that have been recently introduced, those rates now stand at 70% and 30%, respectively. The Government’s aim is to bring them to 60% and 40%, respectively, by the end of this year (2023).”

President and Finance, Economic Stabilisation, and National Policies Minister Ranil Wickremesinghe, who came to power amid the serious economic crisis that has arisen in the country, has given priority to increasing the Government’s income by introducing tax reforms. The agreement between the Government and the International Monetary Fund has also been a stimulus for the related tax reforms, and the Government’s attention has been focused on reviewing the taxes that have been introduced and revising them based on the findings.