Is Sri Lanka's new tax rate is good or bad?

Due to various reasons Sri Lanka is in an Economic Crisis. This crisis made a huge impact for our lives in a negative way. Most of opportunities that we got from other organizations and countries have stopped. Due to the higher inflation rate Sri Lankan government increased the current tax rate and they decided to add those taxes in direct and indirect manner. The impact of these taxes is much harder to people to maintain their economy well.

Sri Lankan people blame to all the politicians who bankrupted their country day-by-day. News and political programs give various opinions about this bankruptcy. But the thing is we have to get a conclusion about this endless debate. So, we have to look into this problem in different views. Rather than that we can list out positivities and negativities of the current tax rate. 

According to the Sri Lanka Inland Revenue report person relief for residents/non-resident citizens of Sri Lanka have to pay their income taxes as follows.

Income Taxes of Sri Lanka

If a person who earns more than Rs. 600,000 per year in allowed for these taxes. The worst case is most of Sri Lankans earns that much of money but cannot live a good life because of the inflation rate increases the price of goods. One of our group members working on a private company and he said that his salary can't satisfy his needs and wants, and he want to pay that 6% too. Worst case is as middle-class people they cannot live a happy life in this country. Therefore, very talented people leave the country to live a better life. In that case Sri Lanka will failing down to a huge trap.

All people who are in the world knows Sri Lanka is the country which is bankrupted. As a bankrupted country Sri Lanka cannot provide proper facilities to their people. Before this situation Sri Lankan government issued tax rates but the services of government were in a very low level at that time. People can't trust Police and Law because they release all the criminals for money and power. People who are telling truth get arrested in Sri Lanka like Mr. Ranjan Ramanayake. 

Our public transportation services are very poor. Due to this situation, there are lots of problems occur in the society. Uncontrollable traffic, Air pollution and the wastage of time are main three issues that occur when the lack of efficient transportation service comes. Government won't be able to build proper transportation solutions for each problem. They collect taxes from people, but they won't satisfy people by their services unlike countries like Finland.

Finland Flag

According to investopedia.com website Finland is the 4th highest tax paid country for married people which is 31.25% and also, they are in the top at the World's Happiness Index in the past few years. 90% of people trust their police and they have a good education system, healthcare industry and other industries. Compared to other countries their work-life balance in a higher level. Not only that most people are well educated. All the facilities that Finnish will obtain by paying their taxes and the governments proper decisions. The following graphs shows the tax rates in Finland. You can read the complete article from www.vero.fi. website.

Examples of tax amounts

Certain time ago people used black money methods like Undial to transfer money between two countries. The reason is when people use another method, they have to pay taxes to the government. So, government stopped the black money methods and won't allowed people to share money via black money methods. That is a good decision because government can earn a lot of money from it. But the thing is people who live in the foreign countries won't send money to Sri Lanka because they don't trust our politicians. If we can build the trust in the people who are working in the foreign countries by these taxed money work for the development process of Sri Lanka it will be a good opportunity for us to rebuild our country.

Mr. Mahinda Rajapaksha

Some tricky people use some strategies to hide their actual income to lower their taxation. But the thing is their strategies impact for the whole country in a negative manner. If we have a long-term plan to change our people's mindset to not to do things like this that would be great rather than all the time blaming to the politicians. 

Taxation is a good thing. But Sri Lankan government time selection is a very bad situation. If they did this before Sri Lanka won't fell into a trap like this. As Sri Lankan now you have to pay taxes to save the country otherwise you cannot live here for a little bit of time.