Sri Lanka’s new ruler’s one – off tax measures do not establish a step towards an effective tax system: IMF

Mar 04, 2015 (LBO) – Sri Lanka new government’s one –off tax, which proposed in interim budget 2015 to finance the budget has not established a step towards an effective tax system, an International Monetary Fund official said. The mission and the authorities agreed on the need for more comprehensive reforms to streamline the tax system and reduce or eliminate exemptions to put revenues on a steady upward path,

Forthcoming technical assistance from the IMF will focus on these areas.

Todd Schneider, who led an IMF mission to Colombo said today the Island’s tax system needs to be transparent and simple.

One – off tax measure introduced to finance the Interim Budget do not, in the mission view, constitute a step toward a more effective tax system, Schneider said.