Tax reforms in the offing- New IRD Chief

Indunil HEWAGE

K.H.M. Kandegedara assumed duties as Commissioner General of Inland Revenue on Monday.

Speaking to Daily News Business, Kandegedara said the department is planning to increase tax compliance this year. Total response for tax files existing is only 40 percent. The department is planning to increase the compliance to at least 70 to 80 percent", he said.

He said the Department is taking legal action to increase compliance.

He is hoping to make some suggestions and changes on existing tax procedure in order to widen the tax net in the country.

Accordingly, more professionals and business people will be included into the tax net. The Government is suggesting some proposals to the tax procedure in the coming budget and the Tax Commission is also operating, he said.

He said the authorities will make some amendments to the tax law and the department will have to wait until the budget and tax Commission report to revise it.

The Department has already given tax incentives for housing construction, high technologies, deep-sea fishing and other sectors. Agriculture and exports are considered tax free sectors in the country. He said most people are not aware about the tax incentives given by the Inland Revenue Department. He said a seminar will also be held next month to urge people to invest in these areas and people will understand what benefits they have in these sectors.

The Inland Revenue Department has drawn up plans to increase its cadre. Increasing the units and staff would be one of the department's main priorities.