Minister added that the Customs and the Inland Revenue Department are the two main departments that bring revenue to the government. He also said that the Customs Ordinance is over 200 years old, (introduced during the reign of Queen Victoria) and therefore a new Customs Act would be brought to Parliament before the next budget.
Minister Samaraweera made this observation when he addressed a ceremony to award Letters of Appointments to newly selected 68 Assistant Superintendent of Custom officials at the Finance ministry auditorium. Around 10,000 candidates had sat for this exam.
“It is the poor people who mostly pay taxes to the government by way of indirect taxes. We should relieve them of this burden. Therefore, I expect to reduce the VAT by 2.5% in the year 2020,” the Minister added.
The Minister whilst stressing on the importance of actively contributing to the economy by way of revenue collection, said that this government was left with a debt-ridden country when it came to office. But the government has been able to manage the debt servicing by increasing the national revenue making it possible to meet the recurrent expenditure.
The Minister further said that after Independence in 1948, the highest amount of debt servicing has to be paid in 2018. “The total foreign debt to be paid this year is US$ 2,845 million and of which US$ 1,789 million has to be paid for government borrowings done before the year 2015. Only an installment of US$ 1,056 to be paid for the foreign loans borrowed after 2015.” Accordingly, 63% debt installments to be paid this year are repayments of debts that had been borrowed during Mahinda Rajapaksa’s tenure as Finance Minister. It was at the level of 75% in 2017.
This situation would further worsen next year. “US$ 4,285 million have to be paid in 2019 and of which UD$3,315 or 77% of the repayment are for the debt obtained during the tenure of the previous regime.”
“Another US$3,768 million will have to be paid as loan installments and the interest in 2020 and of which 77% or US$2,905 million is the debts that were borrowed before 2015. Only US$ 863 million have to be paid for the debt that was borrowed after 2015.”
In 2021, 83% of the foreign debt installments will have to be paid to repay the debt taken before 2015
