📈 Sri Lanka Proposes Bold 'Single National Asset Tax' (SNAT) for Disaster Recovery & Economic Revolution

An open letter to President Anura Kumara Dissanayake proposes a radical tax overhaul to address a devastating cyclone's aftermath and a "broken" tax system. • Current Challenge: A recent cyclone left over 2 million in crisis, requiring massive funding. Existing tax revenue from local property taxes and vehicle licenses is only Rs. 74.7 Bn (2022), just 2.1% of total government revenue. • The SNAT Solution: Introduce a Single National Asset Tax (SNAT) by applying a 100x multiplier to the 2024 local council tax bill for immovable property and luxury vehicles. • This is projected to generate Rs. 7,500 Bn (Rs. 7.5 Trillion) annually. • This revenue would fund cyclone relief (est. Rs. 600 Bn) and create a significant surplus. • Wealth Distribution: The proposal highlights that the top 7% of Sri Lankans hold 65-70% of national wealth, primarily in real estate and business capital. SNAT aims to target these visible assets. • Abolishing Other Taxes: The SNAT is envisioned to replace major taxes, including: • Corporate Income Tax • Personal Income Tax (to counter brain drain) • Value Added Tax (VAT) (to combat inflation) • Capital Gains Tax • Tax on Interest Income • Anticipated Impact: • Prices: A drastic fall in cost of living (potentially halving prices). • Exports & Investment: Boost hyper-competitiveness, attract Foreign Direct Investments. • Currency: Strengthen the Rupee. • Brain Drain: Reverse the outflow of professionals. • Poverty Reduction: Lift millions out of poverty through job creation. • Financial Liberation: Reduce lending rates to 3-5%. • Mechanism & Safeguards: • SNAT is an annual levy on immovable property and luxury vehicles. • Full exemption for properties with 2024 local council rates of Rs. 2,500 or less (properties ~Rs. 1 million) and for motorcycles/three-wheelers. • Uses 2024 council tax bill as a fixed base for 10 years.