IRD to provide tax consultancy services free of charge

Indunil HEWAGE

Provincial offices of Inland Revenue Department (IRD) will essentially be converted into a tax advisory centres with a view to encourage self tax compliance in an effective manner, said Treasure Secretary Dr P.B Jayasundara.

These centres will provide tax consultancy services free of charge and IRD officials will provide a competent and professional tax constancy service to those who require credible and decent information on various tax initiatives.

As far as taxation is concerned, the government went ahead with the implementation of Value Added Tax (VAT) and Nation Building Tax( NBT )at retail and wholesale level where wholesale and retail level transactions are defined for Rs 500 million or above a quarter.

Inland Revenue Department has organized its own logistics and operational arrangements to ensure that retail level VAT is fully operational in the country at the highest organized level of trading business. Dr.Jayasundara said that the government has also exempted payments of VAT for businesses operating below Rs 12 million per annum.

Construction, Tourism, Exports and SMEs are liable to pay only 12 % or less of their profit and we hope that everybody is voluntarily expected to come into the system.

In addition persons earning over 50,000 to 100,000 per month will have to pay 2 % income tax.

We hope that the tax system will become more buoyant with the economy bouncing back to 7.5% GDP growth, he said.