Crisis-hit Sri Lanka hikes tax rates to maximise govt revenues

31/5/2022 3:40:00 PM

Crisis-hit Sri Lanka hikes tax rates to maximise govt revenues

Copy to clipboard https://str.Copy to clipboard https://str.LinkedIn COLOMBO: Sri Lanka wants farmers to plant more rice as part of plans to avert a severe food shortage, a top official said on Tuesday (May 31), as experts warned of a 50 per cent drop in production that would worsen the impact of its already-severe financial crisis.LinkedIn LAHORE : Chamari Athapaththu's Sri Lanka will be keen to garner as many points as possible in the one-day series against Pakistan beginning on Wednesday as they begin the long trek towards the 2025 Women's World Cup.

sg/w2VW COLOMBO (REUTERS) - Sri Lanka's cash-strapped government on Tuesday (May 31) announced a taxation overhaul to boost revenue amid hiking value added taxes and corporate income tax, and slashing the relief given to individual taxpayers.Prime Minister Ranil Wickremesinghe, who took office this month and plans to present an interim budget within weeks, said measures were necessary as the current state of government finances was unsustainable."We've asked airlines to carry the required fuel while operating to Sri Lanka, because there is a shortage of aviation fuel, and we have to manage the situation," Mr Rayhan Wanniappa, a director of Sri Lanka's Civil Aviation Authority, said in a phone interview on Monday (May 30)."The implementation of a strong fiscal consolidation plan is imperative through revenue enhancement as well as expenditure rationalisation measures in 2022," Mr Wickremesinghe's office said in a statement.“It is clear the food situation is becoming worse.Sri Lanka's inflation rose to 39." Airlines that fly to Sri Lanka, including Dubai's Emirates Airline are tankering - carrying more fuel than required - while the island's flag carrier is using the Southern Indian city of Chennai and Dubai to refuel for long-haul flights, people familiar with the matter said, declining to be identified as plans are confidential.1 per cent in May, its statistics office said on Tuesday - a record level, compared with the previous high of 29."In this edition we will try to gain as many points as we can," Maroof said.

8 per cent set in April.The country defaulted on its foreign debt for the first time this month, and has started bailout talks with the International Monetary Fund.Most fertliser will arrive too late for the next cultivation cycle that usually kicks off in early June, a group of agriculture experts have warned.An increase in value added tax (VAT) to 12 per cent from 8 per cent with immediate effect is among the key tax increases announced on Tuesday, which is expected to boost government revenues by 65 billion Sri Lankan rupees (S$245 million).Other measures, including increasing corporate income tax to 30 per cent from 24 per cent from October, will earn an additional 52 billion rupees for the exchequer.The steps include fuel tankering and refuelling aircraft through technical stops at foreign airports, he said.Withholding tax on employment income has been made mandatory and exemptions for individual taxpayers have been reduced, the statement said.The island nation of 22 million people has been battered by its worst economic crisis since independence from Britain in 1948, with a severe shortage of foreign currency stalling imports of essentials, including food, fuel and medicine.Emirates didn't immediately respond to a request for comment.Having said that, it is important for us to prepare well and to deliver the best we can.

The roots of the crisis lie in tax cuts enacted by President Gotabaya Rajapaksa in late 2019, which came months before the Covid-19 pandemic that battered the country's lucrative tourism industry and led to a drop in foreign workers' remittances.The tax cuts caused annual public revenue losses of about 800 billion rupees, the prime minister's office said in its statement.A.The new tax regime and Covid-19's impact, together with the pandemic relief measures, widened the budget deficit significantly to 12.2 per cent of GDP in 2021, from 9."This is just a preventive measure.6 per cent of GDP two years earlier.

In an interview with Reuters this month, Mr Wickremesinghe - who.The country's sole refinery is attempting to restart after three months of shutdown, with crude supplies from Russia which it hopes to refine into usable fuel.

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