Why Sri Lanka’s taxes need to remain high: Economist explains
Photo: NewswireAI summary · 1 min read
1 min readFrom 1 outlets- Newswire says Moramudali compared Sri Lanka’s economic indicators from 1990 to 2020.
- Tax revenue fell from about 20% of GDP to nearly 8%, while GDP per capita more than tripled.
- Newswire reports that Moramudali linked increased debt to debt-funded development and lower government spending.
- He said middle-class people and professionals are bearing the burden of correcting past policy choices.
Newswire reports that economist Umesh Moramudali called for Sri Lanka to maintain higher taxes, arguing that they are needed to address the consequences of decades of poor economic policies and development financed through borrowing.
Newswire says Moramudali highlighted changes between 1990 and 2020: GDP per capita more than tripled, while tax revenue dropped from about 20% of GDP to nearly 8%. He also said government spending declined even as debt increased.
According to Newswire, Moramudali said the resulting economic adjustments are placing a burden on the middle class and professionals. He argued that their lifestyles, education and development had partly been supported by government spending funded through debt.
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Earlier coverage
Reports on the same subject from the months before this story.
- Daily Mirror · CA Sri Lanka calls for wider tax net, growth-focused budget
- Daily Mirror · Indirect taxes ’super high’, no decision on property - Dy. Finance Minister
- Daily Mirror · Rs. 2.1tn unpaid and up to Rs. 1tn in yearly BOI and other tax breaks test SL’s 17% tax goal
- Lanka Business Online · Opinion: We Have a Plan to Collect More Rupees. Where Is the Plan to Earn More Dollars?