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Ranil justifies tax hikes amidst criticism_我的网站

一 |     Colombo, Oct 20 (UNI) Amid growing criticism, Sri Lankan President Ranil Wickremesinghe has justified a hike in income tax for both corporates and individuals, saying it was for the greater good of the country and critical to garner much needed financial support from the international community.
In an address to the nation, the President said the International Monetary Fund (IMF) with which the government has signed a Staff Level Agreement for a $2.9 billion four-year financial support, advised the need for a surplus in Sri Lanka’s primary budget, the Daily FT reported on Thursday.
“It was agreed to since the country needs the support of the IMF,” he was quoted him as saying.
“It was also decided to increase the country’s income from 8.5 per cent to 14.5 per cent of the GDP. However, it is a difficult task to accomplish immediately, it is envisaged to achieve this by 2026.
"Initially, a decision had to be taken on the manner in which the income is to be increased. Money was printed due to the decrease in income. During the past two years, Rs. 2,300 billion has been printed, resulting in inflation rising to 70-75 per cent and even more in respect of food inflation," he said.
Wickremesinghe said these increases need to be controlled, while securing income. Therefore, during the discussions with the IMF a new tax system was proposed. The IMF informed that even the export industries would be required to pay taxes.
The IMF pointed out that in countries with an export economy, the related industries were liable for tax. The IMF also upheld that Sri Lanka’s primary export economy is based on the plantation industry.
During British rule, taxes were charged from every plantation sector, including tea, coconut and rubber. Therefore, if the country has to move towards that goal, taxes will have to be paid. The export sector has now questioned this aspect and the related concerns are to be submitted to the IMF.
Referring to the issue of higher personal income taxation, the President said the majority of tax revenue was through indirect taxation. The majority of the country’s citizens, even those below the poverty line, had no choice but to pay indirect taxes, the President said.
The direct tax revenue was 20 per cent and 80 per cent has been derived from indirect taxes.
The IMF had reservations in this regard and said the amount of tax obtained through direct taxes should exceed 20 per cent. The IMF noted that otherwise this would not be successful and ordinary citizens would need to pay taxes, the President said.
Therefore, the Treasury and the IMF discussed the possibility of limiting the taxation from those who have an income of Rs. 200,000, which did not materialise. Eventually, this resulted in the decision to levy income tax on people earning over 100,000. This has become a vital concern amongst citizens.
But without this tax system, the desired goal will not be achieved. The agreed goal is to achieve 14.5-15 per cent of Gross Domestic Product (GDP) revenue by 2026, Wickremesinghe said.
If Sri Lanka withdraws from this programme, IMF assistance will not be received. Without IMF certification, the support of institutions such as the World Bank, Asian Development Bank, and the countries that have supported financially will not be forthcoming. Then, Sri Lanka will be back to the era of queues, he warned.
In his address, Wickremesinghe also said the Government was ready to implement prudent economic management after successful debt restructuring.
He noted that it was not possible to strengthen the economy without increasing the revenue of the country, which will compel him to reluctantly make tough decisions in order to rebuild the nation.
The President pointed out how in November 2019, the country’s taxes were drastically reduced, reducing the government revenue to 8.5 per cent. This was when the IMF set aside the agreements with Colombo and declared that it was unable to provide the agreed assistance.
"That year the government lost approximately Rs. 600-700 billion as revenue. Simultaneously, the country had to face the Covid-19 pandemic. These issues are the main factors that led to the collapse of Sri Lanka’s economy.
"The country at this juncture is facing a difficult period. Expectedly tough decisions have to be taken during these difficult times. I undertook this challenge when no one else was willing to come forward."
UNI MR。    8月26日讯 勒沃库森中场新星易卜拉欣·马扎近日接受了《图片报》专访，谈及代表阿尔及利亚征战世界杯的感受以及自己在勒沃库森的发展前景。你在效力勒沃库森的首个赛季就被球迷评为队内赛季最佳球员，对此你有何感想？能够被球迷认可我感到非常开心并心存感激，但如果可以的话，我宁可不要这个奖项，换取球队达成赛季目标。我们队在新赛季的目标就是杀进欧冠，为此将付出100%的努力。过去的一年对你意义非凡，从德乙柏林赫塔转会而来就立刻坐稳勒沃库森主力位置，又代表阿尔及利亚队征战了世界杯，你会如何形容这一年？我会说：疯狂而充满激情，更兼具五味杂陈。

二 | 我获得了大量的出场时间，对于个人成长而言，这是无比美妙的一年。你在阿尔及利亚队的4场比赛中全部首发出场，世界杯初体验感受如何？世界杯是全世界最高规格的赛事，能够亲身站上这个舞台，还踢满4场比赛，这是难以置信的体验，这一生都不会忘记。如何看待阿尔及利亚球迷对你的极度追捧？有时会感觉站在聚光灯下也是一件好事，因为这会激励我不断精进自己。有些人或许很难适应这种关注度，容易变得飘飘然，但我会理性看待球迷们对我的喜爱，不会因此产生错误的自我认知。我只想好好踢球，踏实做好自己的事。

三 | 此前你一直代表德国青年队出战，但在成年队阶段选择了父亲的祖国阿尔及利亚，如今克洛普成为德国队新任主帅，你是否会遗憾未能在其麾下效力？我从未后悔自己作出的决定，我很高兴能为阿尔及利亚效力，这是一种荣幸，我热爱这个国家。当然，我也同样热爱德国。如果能允许我这么称呼他的话，我认为克洛普是一位不可思议的主帅，德国队也是一支不可思议的球队。只要队伍完成磨合，主教练把一众高水平球员捏合在一起，德国完全有能力重新成为世界足球强国。世界杯前，马德里竞技曾对您表现出兴趣，俱乐部体育主管罗尔费斯当时表示您是非卖品，这表态是否让您倍感自豪？这种感觉很棒，说明勒沃库森十分认可我的价值。

四 | 我能够真切感受到俱乐部的充分信任，这会进一步给予我自信与前进的动力。继滕哈赫、尤尔曼之后，卡莱斯·马丁内斯是你在勒沃库森迎来的第三位主教练，他有什么特点？他是一个情绪饱满的人，全身心投入比赛，在场边十分活跃，并且格外看重细节，这是他的特点。

五 | 他致力于让我们踢出漂亮足球，这点让我们都很喜欢。

六 | 他是一名优秀的教练，还能带给我们很多提升。

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Published on:14:17:19