Nov 13, 2008 (LBO) – Sri Lanka has been ranked near the bottom of a new global ranking on paying taxes, making it one of the most difficult countries for business to pay their dues. Among the key findings of the study are that economies that rank highly on the ease of paying taxes tend to have lower and less complex taxes with simple administrative processes for paying taxes and filing tax returns.
The most frequent reforms implemented are the reduction of corporate income tax rates and electronic filing, the study found.
“Tax reform is not just about the introduction of tax rates; administrative aspects are almost equally important.”
The report said that consumption taxes, and in particular sales taxes, often assumed to have a minimal impact on business, also need to be efficient.
“However, some sales taxes can be a tax borne, and all sales and consumption taxes have a significant impact on the number of hours it takes to comply and the number of tax payments made.”
The island has achieved an overall ranking of 164 out of 181 economies covered by the report produced jointly by PricewaterhouseCoopers (PwC) and the World Bank-IFC which evaluates the relative e