The government kitty is showing signs of spilling over this year with new taxes adding on to donor contributions. The government kitty is showing signs of spilling over this year with new taxes adding on to donor contributions. The UPFA government launched on an intensive revenue collection campaign in 2004 and the results are already showing.
“We have gone beyond our targets for ESC (Economic Service Charge) for last year,” said Commissioner General of the Inland Revenue, R P L Weerasinghe.
Introduced only last year, the brand new ESC – calculated as one percent of turnover for the year, from all companies – has proved a sure winner, netting in five times the target.
“Our collection target for last year from the ESC was Rs 1 bn. We had Rs 4 bn by December 31. Now it is Rs 5bn,” said Weerasinghe.
The ESC can be written off against income tax which means total revenues, once income taxes are collected, would reduce, but with more companies still left to pay up, the Inland Revenue is confident collection will go well beyond target.
“Nearly 4,000 companies are listed as eligible for ESC