The Professionals’ Trade Unions Collective (PTUC) stated that the Government must take measures to address the demands of professionals since the International Monetary Fund (IMF) has granted authority to the Government to make suitable changes to its new tax policy.

Several trade unions representing professionals led by the Government Medical Officers’ Association (GMOA) met the IMF delegation on Monday (25) to discuss several demands including tax relief. Speaking to the media after the meeting, Federation of University Teachers’ Association (FUTA) Spokesperson, Senior Lecturer Charudaththe Illangasinghe said that they were informed by the IMF delegation that it has understood the problems faced by the professionals in the country, and have therefore asked the Government to make suitable changes in its policies, in any case, if a barrier is being created by the new reforms. Illangasinghe also said that they know how taxation is important in increasing State revenue, but that such kind of unfair tax policy cannot be accepted at all. 

“Neither the IMF nor any financial experts has told the Government that the new taxes should be imposed on this particular group. But, this Government has put its whole weight on the professionals. During the meeting, the IMF delegation told us that they have clearly understood the issues related to professionals and that they do not hope to intervene in those issues in order to create any pressure. They also said that the supreme authority and the ability are vested upon the Government to make a decision in this regard,” he said. 

He therefore urged the Government to take necessary and immediate action to address the demands of the professionals without misleading the public, claiming that no reform can be revised without the approval of the IMF. “The IMF asked the Government to tax people more in order to increase State revenue and not to repress people. Everyone must be treated equally. Therefore, we demand urgent solutions,” he said.

Earlier this year (2023), the Government decided that selected professionals, including doctors, engineers, accountants, and lawyers, who provide services as “independent service providers” should pay a 5% Withholding Tax, according to the new tax system now in operation. This decision was criticised by many parties claiming that it is unreasonable to impose such a tax in the midst of a critical economic crisis. Professionals’ trade unions, including the GMOA and the FUTA led several strikes protesting the new tax policy during the past few months.