SJB MP Eran Wickramaratne says when looking back at the history of the past 40 years of providing tax incentives for foreign investments, it really failed in terms of government revenue.
Speaking in Parliament today (4) the MP said some foreign exchanges have been brought to the country, while some are held in foreign countries by investors.
He noted that jobs have been created yet claimed that the country has not been able to obtain government revenue.
The MP was speaking in Parliament during the debate of the proposals brought under the Strategic Development Project Act (SDA) and some other amendments on financial acts.
Questioning the objectives of the SDA, the MP said the act is primarily flawed.
The MP said “Making a point he said that what we need is to simplify the tax system in the country and create a better environment. That is why the previous yahapalana government brought an Inland Revenue Act. The Speaker of Parliament must submit the Presidential Commission findings on the Customs and if it is there this government can simplify by just bringing a new customs act which is over 100 years old. Simplifying the structure of the tax system is the need of the country and not creating acts and giving benefits to a few selected people would not worth in that particular way”.
The Parliamentarian stated that the objectives of the strategic development act mainly are (a) the strategic importance attached to the proposed provision of goods and services, which will be of benefit to the public ; (b) the substantial inflow of foreign exchange to the country ; (c) the substantial employment which will be generated and the enhancement of the income earning opportunities ; and (d) the envisaged transformation in terms of technology.