Sri Lanka aims to hike taxes in budget to soften crisis – By BHARATHA MALLAWARACHI

Sri Lanka aims to hike taxes in budget to soften crisis – By BHARATHA MALLAWARACHI

Sri Lanka aims to hike taxes in budget to soften crisis - By BHARATHA MALLAWARACHI

Laborers transport a cart load of rice sacks at a market place in Colombo, Sri Lanka, Monday, Nov. 14, 2022. (AP Photo/Eranga Jayawardena)

Source : abcnews.go

Sri Lanka’s president has proposed to more than double the country’s tax revenue as the island nation struggles to come out from its worst economic crisis

Sri Lanka’s president on Monday proposed to more than double the country’s tax revenue as the island nation struggles to come out from its worst economic crisis.

Unsustainable debt, a severe balance of payment crisis on top of lingering scars of the COVID-19 pandemic have led to a severe shortage of essentials such as fuel, medicine and food, and the soaring prices have caused severe hardships to most Sri Lankans.

Presenting the annual budget in Parliament, President Ranil Wickremesinghe put the country’s plight down to the reduction of government revenue and stressed the need to increase it.

Wickremesinghe said the country’s revenue has declined significantly to 8.3% of the GDP in 2021, which he said was one of the lowest in the world. He said his government presented revenue measures to correct the 2019 tax cuts on three occasions this year.

“These tax reforms will help increase revenue in 2023 and beyond, enabling to move away from costly monetary financing (money printing) to cover government expenditure in the future,” said Wickremesinghe.

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