The Chief of Finance in Sri Lanka, Ali Sabry, has made a shocking statement that has left many reeling. In the midst of a severe fiscal crisis, Sabry has boldly proclaimed that raising the sales tax is the only way out. This staggering news was brought to light by Archana Shukla, a correspondent for BBC Business, a mere twelve hours ago.
It appears that the government's attempt to ease the burden on citizens by reducing the sales tax has backfired. In light of this unfortunate turn of events, increasing the tax seems to be the only viable solution.
Sabry revealed this information in an exclusive interview.
Value Added Tax Rate (VAT) at 8% in 2019. during the next eight months to pay for the imports of Daily Essentials.
Comments from it comes in the midst of mass protests on government economic policies.
Mr. Sabry: who leads negotiations with the IMF, as well as with other lenders such as India and one of its largest creditors, China, said that collecting taxes It was just one of the difficult decisions that I would have to take as conversations continue with a rescue agreement.
"We have to increase taxes.
We need to find a way to close the gap and the income spending we have," he said.
added that the current VAT level "is definitely not" is not "is definitely not sustainable" for a country like Sri Lanka that depends on imports of elements of elements essential and said the rate should rise to 13% or 14%.
He also admitted that a movement to reduce taxes in 2019 shortly after Gotabaya Rajapaksa became president, and added that the government had waited too much before asking Help the IMF.
MR Sabry was also cautiously optimistic that the country can start paying its international creditors again for next year, but said it was "very difficult, very difficult For me to give a timeline, I hope and public relations. Oh, it is as soon as possible, probably six months later.
But I don't know.
Pandemia and war in Ukraine made it "impossible" making payments to creditors foreigners.
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