By: Staff Writer
July 28, Colombo (LNW): The Inland Revenue Department (IRD) is set to reactivate the currently dysfunctional Random Access Management Information System (RAMIS) by December this year, involving a redesign and software upgrade, as disclosed by finance ministry sources.
The reactivation aims to address the original design’s unintended consequences, which increased discretion and interaction between revenue officials and taxpayers, leading to misallocation of IRD resources, according to a senior IRD official. Efforts are underway to review and streamline the various business processes RAMIS was designed to automate.
Enhancing the online filing experience is a relatively quick and cost-effective task. Implementing this could support a policy requiring electronic tax return filing for all taxpayers, reducing interactions with IRD officials.
The new system is intended to curb fraudulent practices by tax evaders and corrupt officials, as well as identify those not properly fulfilling their revenue collection duties, revealed the President’s Chief of Staff.
RAMIS is expected to be fully automated, eliminating manual processes to prevent the accumulation of default taxes.
The agreement with the Singaporean company developing and maintaining RAMIS expires on January 31, 2024. However, the IRD has not developed sufficient internal capacity, including human resources, to fully manage RAMIS by that time.
President’s Chief of Staff, Sagala Ratnayake, has instructed the relevant departments to reactivate the system software within two months to support the 2024 budget process.
A Public-Private Partnership (PPP) is recommended to involve a private entity in running and maintaining the back office of RAMIS, creating a mutually beneficial arrangement.
A report from the Cabinet Sub-Committee, assigned to investigate and recommend the effective utilization of RAMIS, was recently presented to President Ranil Wickremesinghe.
Finance, Minister Wickremesinghe issued a Cabinet Memorandum on obtaining maintenance services for RAMIS on April 8, 2024, following a Cabinet decision. The sub-committee, chaired by Power and Energy Minister Kanchana Wijesekera and including Ministers Tiran Alles and Nalin Fernando, prepared the report with seven main recommendations emphasizing the urgency of effectively utilizing RAMIS.
Key recommendations include:
Initiate an Expression of Interest (EOI) process to identify suitable partners for managing RAMIS.
Develop and implement a comprehensive takeover plan before the current maintenance contract with Singapore Corporation Enterprises (SCE) expires.
Prioritize clearing the system backlog from the 2019/2020 assessment year onwards and report progress monthly to the Council of Ministers quarterly.
Use the National Identity Card (or a future alternative) exclusively for identifying individuals for tax collection.
Integrate RAMIS with a Connected Government Framework linking various government institutions.
Simplify the tax revenue collection process by developing a user-friendly portal with enhanced user experience and streamlined online communication.
Prioritize amending laws and regulations to implement the recommended tax policy changes.
