Ravi explains how to earn income without taxing the people unnecessarily

Former Finance Minister, Ravi Karunanayake emphasized that a new and fair tax system should be established in order to achieve practical and desired goals to implement a sustainable development plan in Sri Lanka.

He also says that he has observed that the ongoing discussions and debates about the strict tax measures, implemented to improve the state's financial situation are not sustainable as well as practical.

Speaking to "Lankanewsweek" about the current tax system, former Finance Minister Ravi Karunanayake further said that instead of imposing various taxes and levying taxes that the people cannot afford to pay, how much revenue should be generated has to be found out to  meet the financial goals.

Ravi Karunanayake also pointed out that the government has to make a strong effort to prevent the acute shortage of essential goods and supplies due to the wrong economic policies implemented by the rulers of the country in the past and the resulting economic crisis and there has been a recorded inflation.

Ravi Karunanayake who recalled how he utilized the International Monetary Fund to overcome the balance of payments crisis and increased the official foreign reserves in order to build confidence among international investors during his tenure as the Finance Minister and he increased the government revenue from 8.4 % to 15% against the GDP in less than 33 months not by increasing the percentage of tax of payers but by achieving tax revenue targets.

Former Finance Minister who pointed out that there should be an approach with professional training and more pragmatic experience in bridging the deficit in government revenue, highlighted that the severe challenge associated here is the perception among the people that paying tax is not reasonable which is wasted and  exploited by civil servants and politicians.

Therefore, it is necessary to inculcate in the minds of the people that every rupee earned by the government is spent wisely and Sri Lanka as a country has passed 75 years of independence but it has to be examined whether it has achieved economic freedom.

Ravi Karunanayake further said that at a time when the economy of Sri Lanka is almost totally paralyzed, we should look positively towards the recovery of that economy and every Sri Lankan should work with determination to revive the country and bring income to the country.