Amidst protests against the proposed Inland Revenue Bill, Finance Minister Mangala Samaraweera has sought to explain what he considers the rationale behind the move. The Joint Opposition has vowed to block the Bill while the Supreme Court, too, has been moved against it on the grounds that it violates the constitution.
The Finance Ministry has issued the following statement after Minister Samaraweera’s meeting with the Inland Revenue trade unions.
“The Minister told the unions the main objective of the new Inland Revenue Bill was to simplify the tax system in the country in order to create an investor friendly environment that will attract more foreign direct investments in the near future.
The Minister said that the present tax system in place is complicated and that investors find it difficult to understand. Therefore, he said that the new Inland Revenue Bill will broad-base the tax system and incorporate globally accepted new tax principles to deal with international cross border relations.