Recommendations and observations submitted by the Ceylon Chamber of Commerce to the Government on the proposed new Statute of Inland Revenue
The Chamber was alerted by members that the Government is in the process of formulating a new Inland Revenue Bill, to be implemented with effect from 1 April 2017. The Taxation Steering Committee of the Chamber which has member representation across many sectors, and is all professionals with expertise in this area, met several times, deliberated it in detail, and compiled a set of comprehensive observations and recommendations on the draft bill. As with all Chamber submissions, the viewpoint was of the entire private sector, but bearing in mind national needs for enhancing revenue.
Given the wide implications of a new Act governing the Inland Revenue regime, on business operations and investor confidence, we believe that consultations with the private sector is important, prior to finalizing a new statute. The end of mission press release of the International Monetary Fund released on 7 March 2017, also stated that “…advancing the legislative process for the new Inland Revenue Act, with effective public consultations, is a critical step towards rebalancing the tax system toward a more predictable, efficient and equitable structure”.
The Chamber fully supports efforts to modernise the tax system – both in terms of tax policy, tax law, and tax administration. We look forward to an early opportunity to engage with the authorities to discuss our suggestions and concerns and hope that the Ministry of Finance and the Inland Revenue Department opens up this space.