Tax experts say that government’s ad hoc changes to taxes outside the budget harms the stability of the fiscal environment. Tax experts say that government’s ad hoc changes to taxes outside the budget harms the stability of the fiscal environment. They also believe that the Economic Service Charge has not looked positive on a cross section of businesses.
Prior to the first budget of the government several taxes were imposed outside the budget.
According to tax experts, sudden introduction of taxes prior to the budget cerates volatility in the country’s fiscal environment.
“The businesses find it difficult to do their planning properly. You could see that some of the corporates have shown some volatile results because of taxes that have been introduced in between. In general it has hampered businesses specially the ad hoc changes that are made from time to time,” says Lakmali Nanayakkara, Partner, Ernst & Young.
Tax experts also say that the introduction of the Economic Service Charge (ESC) made an unhealthy impact on some sectors.
The ESC is charged on a company’s turn over, on the basis that every b