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Fishing Expedition

Sharhan Muhseen and Raja Senanayake

Apr.07 (LBO) - Sri Lanka's main tax authority plans to net in 40,000 new taxpayers in 2006, its newly appointed head said.
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Sri Lanka has few taxpayers and attempts to widen the base have met with limited success over the last decade.

"For a 19.2 million population a 322,000 tax payers that not enough," says Commissioner General of Inland Revenue A A Wijepala.

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"I have decided to open up 40,000 income tax files within this year and at least another 100,000 files within three years.
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Then there should be at least 500,000 income tax files."

There are 137,000 income tax payers and a further 195,000 pay-as-you-earn (PAYE) payers from whose salaries advance deductions are made.

Wijepala is hoping to target doctors, lawyers, tuition masters and other professionals.

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All these are private sector employees, while Sri Lanka's public sector employees are exempt from tax.

Meanwhile, tax holidays are regularly doled out as investment incentives.

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Wijepala is also planning to investigate people who regularly visit countries like China, Indonesia Thailand and Singapore more than twice a year.




The depa

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