8th General Meeting of the Poverty and Economic Policy Research Network

IPS was awarded a grant by the Poverty and Economic Policy Network (PEP) for a proposal on: “Will a Tax on Public Servants Improve Progressivity?” presented by Nisha Arunatilake at the 8th General Meeting of the Poverty and Economic Policy Research Network in Dakar, Senegal, during 14th to 18th June, 2010.

Faced with budget constraints, the Sri Lankan government entered into an International Monetary Fund Stand-by-Arrangement (IMF-SBA) for US$ 2.6 bn in 2009. Along with this facility, the government has committed to raising the revenue-to-GDP ratio from 14 per cent at present (2009) to 16.9 per cent of GDP by 2012. A recently appointed Presidential Commission on Taxation has proposed reforms for broadening the tax base and raising revenue.

The proposed study uses household income and expenditure data to assess the progressivity and horizontal inequity considerations of such a change in tax policy in the country.

The research team includes: Priyanka Jayawardena, Aushka Wijesinhe and Nethmini Perera.