Former UNP Deputy Leader and MP Ravi Karunanayake has questioned the government in Parliament over what he described as unequal tax treatment between Sri Lankan taxpayers and foreigners earning income in the country.
Speaking during the parliamentary session, Karunanayake argued that Sri Lankans pay taxes throughout their daily lives, while some foreigners are able to earn income and leave the country without contributing to the tax system.
He claimed that, based on information available to him, Sri Lanka could be losing between Rs. 700 million and Rs. 1 billion in revenue due to the absence of an effective mechanism to tax certain foreign income earners.
Karunanayake called for a more systematic approach to tax collection, questioning whether similar tax relief should be extended to Sri Lankans if the government is unable to collect taxes from foreign nationals.
Responding on behalf of the government, Minister Vijitha Herath acknowledged that a proper methodology for such tax collection has not yet been established.
He added that, due to the lack of a comprehensive mechanism, such taxes have not been collected for many years.
