Ten percent increase during this year:

Government targets Rs 850 b tax revenue

Harshini Perera

The country is targeting Rs 850 billion through the tax revenue this year and expects to increase its revenue by 10 percent during this year.

State Revenue, State Finance Minister and Finance and Planning Deputy Minister, Ranjith Siyambalapitiya told Daily News Business the tax income of the departments of Customs, Excise, Inland Revenue and the Registrar of Motor Vehicles (RMV) was Rs. 780 billion last year.

It is expected to increase the income to Rs. 850 billion this year which is a 10 percent growth compared to the last year, he said. There has been a slow down in the Government income received during the first and second quarters of this year. The expected foreign exchange earnings decreased somewhat this year due to the global economic downturn. But after the end of the war the situation improved. Even then the 10 percent loss of foreign exchange earning could not be prevented.

Compared to the past few years, the inflation rate has decreased to 0.7 percent this year despite the difficulties faced by Sri Lanka. This is a good sign of a better economy in the coming years, he said.

Under the provisions of the Constitution, the Government could only spend the money passed by the annual budget until December 31 this year. Hence, the Government has to present the Vote on Account before December 31, 2009, he said.