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Paying tax for vehicles not needed if annual income less than Rs. 500,000: IRD Chief

2018-07-11 08:35:26
25
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Taxpayers whose annual income is less than Rs. 500,000 per year, need not pay additional taxes for owning a vehicle, Inland Revenue Department (IRD) Commissioner Ivan Dissanayake said.

He told the Daily Mirror that some media institutions had misinterpreted a speech he had made recently.

He said people who live a luxury life and make seven or eight trips abroad a year should open a tax file with the IRD.

Persons who open tax files and work in the private sector with an annual income that exceed Rs. 500,000 will have their taxes automatically deducted from them by the Department. Upon deduction, no other taxes will be charged from them even if they own vehicles.

“However, there are businessmen who own multiple vehicles who evade paying taxes and there are also those who drive luxury and super luxury vehicles. Their incomes often exceed Rs. 500,000. So, they should open a tax file and pay their taxes,” Mr Dissanayake said.

“Several airlines had informed the IRD about air tickets being sold at higher rates as most of the people travel overseas during the school holidays,” Commissioner Dissanayake said.

“Therefore, I requested those people to open tax files considering their annual income,” he said. (Chaturanga Samarawickrama)


  Comments - 25

  • JOSHUA Wednesday, 11 July 2018 11:02

    IRD should talk about proposals that can be implemented.

    Reply : 2       52

    Richard Wednesday, 11 July 2018 17:29

    where do we find these buggers? a person earning Rs500,000 p.a (Rs41,666 p,m) will not be able to afford to own and run a vehicle let alone paying additional taxes. our governors have lost touch with reality a person (living a lone) must earn a minimum of Rs100,000 p.m to to enjoy a basic existence of housing, travel, clothes, medical, etc. Family units must be given a higher tax free income bracket.

    Reply : 1       73

    Cisco Wednesday, 11 July 2018 11:03

    Some of IRD officers with their family also tour abroad during school holidays.

    Reply : 2       122

    Steve Wednesday, 11 July 2018 11:18

    They don't go trips with their own hard earned money, they go trips in bribe which they get paid to import and export illegal stuff, so it doesn't count as per the dumb government.

    Reply : 1       106

    Southpaw Wednesday, 11 July 2018 11:49

    perhaps their income is Tax Free as employees of IRD. Unless their trips are funded by the Tax Payer.

    Reply : 2       71

    PC Wednesday, 11 July 2018 11:13

    This hue and cry is totally useless. Just get hold of all the politicians in parliament, provincial councils

    Reply : 1       64

    sms Wednesday, 11 July 2018 11:14

    In Sri Lanka vehicle prices are increased by add more and more taxes, normal citizens cannot buy a vehicle, those privilege for vehicle permit, they can enjoy the life, rest suffering in bus and train.

    Reply : 2       68

    Rasheed Wednesday, 11 July 2018 11:34

    How about opening files for IRD officers, who owns appartments and luxury vehicle which could't be obtain by their salaries.

    Reply : 1       90

    Raspi Wednesday, 11 July 2018 11:46

    Against the popular opinion, What he says is that there are people who have methods of getting income without paying taxes. i.e. if a private sector employee gets a salary that needs to be taxed it is automatically done by the company. But say you run a business but you don't declare what you are earning then you are actually evading the taxing process.

    Reply : 8       25

    chithra latha Wednesday, 11 July 2018 11:49

    Now annual income Rs 500,000 is nothing compared to the expenses.If two school going children included in a family situation is worst as tuition fees , school fees ,van fees included.With very difficulty can refrain from malnutrition.

    Reply : 1       45

    Nihal Wednesday, 11 July 2018 11:58

    Tax free personal income per month is rs.100,000/-Isn't it?Then why 500,000 annual ?

    Reply : 2       62

    dinesh Wednesday, 11 July 2018 15:08

    quite right... i guess the guy who worked out the 500k annual did not pass maths at O/L

    Reply : 1       36

    hello Thursday, 12 July 2018 17:46

    I think we need clarification on upper ceiling is it 500000 or 1200000 in Rs. annually

    Reply : 0       5

    lalu Wednesday, 11 July 2018 13:33

    Not at all necessary if the operations of the privately owned Steel mills are probed properly.

    Reply : 1       9

    Jayamini Perera Wednesday, 11 July 2018 13:36

    How can a family man earning around 42,000 a month can afford a vehicle?

    Reply : 0       24

    Demo Sunday, 15 July 2018 23:26

    Having a vehicle and runninga a vehicle is different. Some people run the vehicle only to go to church on Sundays

    Reply : 1       0

    B@T Wednesday, 11 July 2018 15:18

    How about the government displaying the way collected taxes are spent?

    Reply : 0       21

    Gayan Wednesday, 11 July 2018 15:42

    THIS IS BULSHIT ,if anyone earn more than 50000 monthly have to pay this tax .

    Reply : 0       10

    Rohan Wednesday, 11 July 2018 16:02

    Is the commissioner talks about wealth tax or income tax? As far as I am aware there is no wealth tax in SL. If so how would these politicians with billions of wealth shroud be taxed? owning cars is a wealth issue and if any tax it will be wealth tax.

    Reply : 0       12

    Dimuth wickramasinghe Wednesday, 11 July 2018 16:16

    අනේ හැමෝගෙන්ම ගන්න අනේ

    Reply : 0       7

    Kalpage Wednesday, 11 July 2018 16:39

    taxes.taxes..taxes.. everywhere. No service. No regard for senior citizens and pensioners? No one talks.

    Reply : 0       18

    Katie Thursday, 12 July 2018 09:38

    In the first instance this tax on holidays and cars should be passed in parliament presented by the finance ministry. Mr IRD should know that by now.

    Reply : 0       2

    Supun Thursday, 12 July 2018 09:39

    People pay taxes for each n every item they purchase. in return people don't get a acceptable public service.Just see SLTB,hospitals etc. Major portion of these taxes are to feed the set if cows at Diya....wa.As the system continue, people will have to pay more n more taxes in the future...

    Reply : 0       3

    Daniel Thursday, 12 July 2018 15:12

    There is no legal relationship between any person's annual income and car ownership. How is IRD going tax a car owners if the car is registered in the name of high income earner's spouse or child?

    Reply : 1       7

    Car owner Friday, 13 July 2018 23:29

    Thanks for the tips

    Reply : 0       1

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