Opinion
Should only private sector employees pay income tax?
By Sanjeewa Jayaweera
Who currently amongst those who receive a salaried income is not on the streets protesting against the need to pay income tax? The obvious answer is only those working in the private sector. The private sector is often slammed for its reluctance to criticise the government for everything wrong with our country. So their reticence may once again result in only private sector employees paying income tax if the government caves into the demands of the public sector employees and trade unionists.
Based on media reports and television visuals, most state sector employees and those working in state-owned enterprises are on the streets demanding that they not be subject to income tax. Yes, a few say they don’t mind paying income tax but at a lower rate and whilst some demand greater transparency regarding how taxpayer money is spent. However, the overall impression created is that state sector employees don’t want to pay income tax.
As someone who worked in the private sector for nearly three decades and paid significant amounts as income tax, I, too, despised the lack of transparency and equity. However, I did not have the luxury of coming to the streets, refusing to pay the tax, or seeking judicial intervention. I had no choice. My employer deducted the tax and remitted the balance to my bank account.
Shockingly, those protesting against paying income tax are not on the breadline. I see there are two segments. The first lot is mostly public sector employees who are at least in middle management. The second is those in state-owned enterprises earning significantly high salaries and overtime despite being overstaffed.
Those working in the public sector who are out on the street are mostly university graduates who benefited from free education, demanded and received a government job, and earned a pension they never contributed to post-retirement. So their reluctance to pay income tax is perplexing, although many would put it down to the entrenched entitlement mindset.
GMOA IS ONCE AGAIN AT THE FOREFRONT
As usual, the Government Medical Officers Association (GMOA) has been the most vociferous of those objecting to increased income tax rates. That is not surprising because even in 2015, they went to the supreme court seeking relief from paying income tax at the highest rate then of 24%. When they failed, they approached the government requesting that doctors be categorised as part of the small and medium enterprises (SMEs) subjected to only 14%!
So it is unsurprising that they do not want to pay income tax at 36%. It amazes me that doctors, despite benefiting from free university education, the right to engage in private practice, and regular car permits have a great reluctance to pay income tax at the same rates as others. Many stories are circulating about how doctors ask patients to settle their fees in cash, particularly post-surgery, to avoid income tax on their fees.
The good doctors have been joined by judges, university professors, university teachers, engineers and bankers. The only lot that has not joined the protests are those working in the department of Inland Revenue! It would be ironic but not surprising if they do.
It is a shocking indictment of our country’s social fabric that the most supposedly educated citizens feel that they should not be paying income tax and that only those employed in the private sector should bear the income tax burden.
THE GOVERNMENT AND PARLIAMENT ARE NOT WALKING THE TALK
Having said that, I certainly endorse those who protest, saying there is a lack of will on the part of the government to reduce state expenditure and, of course, a lack of transparency as to how our taxes are spent and that rampant corruption is going unchecked.
The appointment of cabinet ministers and state ministers well above what is required solely for political expediency is a case in point. That those appointed are inefficient and some stand accused of corruption makes it even harder to digest.
The much-debated expenditure allocation of Rs 200 million for the independence day celebration whilst asking ordinary citizens to tighten their belts is proof of utter insensitivity and an entrenched mindset of political entitlement. Moreover, the explanation given by the President that the world might think that the country lacks the financial resources to celebrate independence day has left me and many other millions totally incredulous.
Several international aid agencies have assessed that over five million of the population cannot adequately feed themselves, and malnutrition among children is at an all-time high. In addition, foreign and local correspondents have filed media reports of the dire situation in our country. As such, the world is aware of our predicament, and this fact should not escape the President and his cabinet. So who are they trying to deceive?
A principle of good leadership is being able to “walk the talk.” In that respect, the President and his cabinet have been woefully lacking. My criticism is not just limited to the current President and cabinet. The parliament, which includes those in the opposition, can easily demonstrate their commitment to austerity measures that they demand from us by voting to curtail their benefits, such as closing down the parliamentary restaurant where it is claimed that sumptuous meals are served. In the overall context of government expenditure, it might be a meagre amount. However, they need to be seen “walking the talk”.
A media report reported that Rs 800 million had been spent on refurbishing a residence occupied by former President Mahinda Rajapaksa. If this report is indeed correct, then it is an abominable act by someone who keeps repeating that he is with the common person.
A recent report that the Kurunegala Municipal Council has spent Rs. 60 million to remove a stone at a construction site where a building was being constructed for a Maternity and Child Clinic, whereas the approved cost was Rs. 9.3 million reflects the corruption that permeates all state institutions. That none will be charged and jailed for this offence is guaranteed.
I have highlighted a few minor examples of taxpayer money being robbed and wasted. It is, therefore, not surprising that some feel that being subjected to income tax is unfair.
WIDEN THE TAX NET AND IMPOSE A 10% WITHHOLDING TAX ON INTEREST INCOME
There is no doubt that the tax net should be widened. Many liable to tax are not doing so as they are wilfully avoiding tax payment, with many not having a file at the IRD. It was recently reported that as many as 113 members of parliament do not have tax files. In many conversations, a question is raised whether all traders in Pettah have a tax file. From my experience in the private sector, I know that most wholesalers and distributors are either not paying taxes or what they pay is significantly understated. It is generally believed that most of the 500,000 grocery stores are not within the tax net. The IRD is at fault for not forcing these miscreants to register.
An eminently sensible proposal by Dr Nishan De Mel, head of the research agency Verite is to increase the withholding tax (WHT) on interest income to 10 per cent. He has argued that the additional tax collected would enable the government to give a tax reduction to those earning salaries above Rs 100,000 to maybe Rs. 500,000 per month. His suggestion is based on the assumption that most of our country’s “super rich” are underpaying taxes. Taxes collected as the source is guaranteed income for the state. An argument that may be put forward against this is that it will penalise pensioners who may not be liable for tax. The IRD issuing a tax direction can resolve this by confirming that the recipient is not liable for tax. The reluctance of the government to adopt the suggestion is perplexing, if not surprising.
THE NEED TO INCULCATE PAYING OF INCOME TAX AT A YOUNG AGE
Returning to why most state sector employees are reluctant to pay income tax, I believe that the reluctance has been ingrained in their DNA by successive governments by exempting them from income tax. This is because so many good social attributes are taught, and people are exposed to them at a young age.
In my case, my parents inculcated in me that I have a social responsibility to those underprivileged and, of course, the need to adhere to the law of any country I live. At 18, when I worked part-time as a petrol station attendant in the UK whilst studying, my salary was subject to income tax. Despite my nominal wage, I was conditioned to the need to pay income tax. It is the same discipline I adhered to during my working career, and even after my retirement pay my taxes every quarter without any underpayment or delay. It is the same for all private sector employees in our country, where the employer deducts income tax from the salary. So they are conditioned at an early age to the proverb, “Nothing is certain in life other than death and taxes.”
Those employed in state-owned enterprises have gotten used to the employer bearing the tax on their behalf. So the new rule that the employer will no longer be allowed to absorb the tax is causing them much distress. Yet, shockingly, such a scheme has been in existence. The mindset of state employees was illustrated when recently, an employee of the Ministry of Finance justified this practice by saying, “What does it matter whether the employer bears the tax? After all, the IRD receives the tax” It is a shocking reflection of the prevailing attitude.
It is a universally accepted social principle that those better off must contribute a fair share towards maintaining those less well off and other services that the state provides, either free or at subsidised price levels. The responsibility of paying income tax is even more critical in a society that has accepted free education and free health care should be a right of every citizen. It is, therefore, difficult to comprehend why our supposedly educated citizens who have immensely benefited from free education are now unappreciative of the need to repay the state and the citizens a fair share of their income. I am shocked that university professors and teachers, who are assumed to be a fountain of knowledge and appreciate social responsibilities, are also out on the street protesting against the increase in income tax rates. The same applies to those at the Central Bank, who should understand our economy’s perilous state more than others.
Opinion
Rethinking our attitude towards three-wheeler industry
by Sampath Perera
An ordinary journey through Colombo raises uncomfortable questions about road discipline, passenger safety and our tendency to judge motorists by the vehicles they drive.
It was a little past noon when I finished attending a court matter and remembered that I had to visit a nearby bank before returning to my other work. The bank was hardly a kilometer away, a distance I would normally have walked without giving it much thought. However, anyone who has walked through Colombo in formal court attire under the scorching midday sun would appreciate why I was reluctant to do so. Taking my own vehicle was not particularly appealing either, as finding a parking space near a bank during business hours can sometimes take longer than the transaction itself.
After considering my options, I decided to take a three-wheeler, a perfectly ordinary decision that unexpectedly left me reflecting on the way we judge those who drive them. Within minutes, I was seated in the rear, travelling through the usual Colombo traffic. It was convenient, reasonably priced and saved me the trouble of searching for parking or arriving at the bank drenched in sweat. As we approached a busy junction, however, a car suddenly cut across our path without any indication. Its driver appeared determined to squeeze into a narrow gap, apparently unconcerned about the vehicles already occupying the road. Our three-wheeler driver immediately applied his brakes, throwing me slightly forward in my seat. Fortunately, he reacted quickly enough to avoid a collision, while the car continued on its way as though nothing unusual had happened.
The incident itself was hardly extraordinary by Colombo’s standards, but it made me consider how differently we might have reacted had the situation been reversed. If a three-wheeler had suddenly cut across a car in the same manner, the driver would probably have been subjected to angry horns, harsh words and the familiar accusation that three-wheeler drivers have no respect for road rules. Yet when someone driving a comfortable, air-conditioned car behaves just as irresponsibly, we tend to treat it as another unpleasant encounter in traffic. It seems that, in our public discussions about road discipline, the seriousness of an offence sometimes depends not so much on what a driver does, but on the vehicle he happens to be driving.
This is not an attempt to portray three-wheeler drivers as innocent victims of unfair criticism. Anyone who regularly travels on Sri Lankan roads knows that some drivers behave recklessly, stopping without warning, making dangerous U-turns, disregarding traffic signals and squeezing through gaps that sensible motorists would avoid. Such conduct deserves criticism and, where appropriate, legal action. Nevertheless, it would be equally dishonest to pretend that these practices are confined to three-wheelers. A few minutes spent observing traffic at a busy Colombo junction would reveal expensive cars changing lanes without indicating, SUVs obstructing pedestrian crossings, motorcycles weaving dangerously between vehicles and buses stopping wherever passengers signal them to do so.
What is troubling is our tendency to turn the misconduct of an individual three-wheeler driver into an indictment of an entire profession. A badly parked three-wheeler becomes another example of everything wrong with the industry, while a luxury car obstructing a pavement is generally treated as the irresponsible conduct of its particular driver. Perhaps this difference in perception has become so familiar that we rarely question it. Yet the law makes no distinction between an illegally parked vehicle costing several million rupees and one purchased through a modest leasing arrangement. Both can obstruct traffic, inconvenience pedestrians and create dangerous situations for other road users.
There is also considerable irony in our relationship with three-wheelers. We complain about their presence on the roads, accuse them of contributing to congestion and criticise the behaviour of their drivers, but the moment we need to reach somewhere quickly, avoid a parking problem or transport an elderly relative to a nearby hospital, we often turn to the very vehicles we complain about. In many rural communities, where public transport remains inadequate, three-wheelers provide an essential connection between homes, hospitals, markets and bus routes. Their contribution to everyday mobility is difficult to dismiss, particularly for people who cannot afford private vehicles or have limited transport alternatives.
The driver who took me to the bank that afternoon was simply earning his living. For him, the three-wheeler was not a symbol of traffic disorder or a subject for public debate, but a means of supporting himself and possibly a family. He had provided a useful service and, when confronted with another motorist’s carelessness, demonstrated the kind of defensive driving that we should expect from everyone using our roads. By the time I paid the fare and stepped out near the bank, I found myself wondering whether our criticism of three-wheelers sometimes says as much about our own prejudices as it does about genuine concerns over road safety.
That question becomes particularly relevant when we consider one of the strongest arguments made against three-wheelers: passenger safety. There is no denying that a conventional three-wheeler offers considerably less protection in a collision than a modern passenger car equipped with airbags, seat belts and a reinforced passenger compartment. Its lightweight construction and limited structural protection expose occupants to risks that should never be underestimated. But acknowledging those limitations is quite different from suggesting that such vehicles have no legitimate place on our roads. If the absence of a protective passenger compartment is sufficient reason to question a vehicle’s acceptability, we must also consider motorcycles and bicycles, whose riders are even more exposed to the consequences of a collision.
A motorcyclist has little protection beyond a helmet and appropriate riding equipment, while a cyclist has neither airbags nor a surrounding metal structure to absorb the impact of an accident. Pedestrians are more vulnerable still, particularly on roads where pavements are obstructed or entirely absent. Yet nobody would seriously argue that walking or cycling should be discouraged simply because these activities involve greater physical exposure. The sensible response is to improve road conditions, regulate speeds, strengthen vehicle standards and ensure that motorists respect vulnerable road users. The World Health Organization has consistently emphasised this broader approach to road safety, recognising that pedestrians, cyclists and motorcyclists account for a substantial proportion of road traffic deaths worldwide.
The comparison does not mean that all vehicles are equally safe, nor should it be used to minimise the genuine risks associated with three-wheelers. Different vehicles offer different levels of protection, and their safety depends on design, maintenance, speed, road conditions and the circumstances of a collision. However, there is something fundamentally flawed in assuming that a vehicle becomes unacceptable merely because it cannot provide the protection available in a modern car. If that were the standard, we would have to reconsider the place of several widely used forms of transport. More importantly, we would risk overlooking the responsibility of drivers whose behaviour can turn an otherwise ordinary journey into a dangerous encounter.
There is an equally questionable assumption that travelling in a larger or more expensive vehicle somehow reflects greater responsibility on the road. A modern car may provide better protection to its occupants, but its safety features cannot compensate for the arrogance or carelessness of the person behind the steering wheel. An SUV equipped with advanced braking systems and multiple airbags can still be driven recklessly, and its greater weight may increase the danger to pedestrians, cyclists and smaller vehicles in certain collisions. Road safety cannot therefore be measured solely by how effectively a vehicle protects its occupants. It must also consider the risks that vehicle presents to everyone else sharing the road.
Perhaps what we need is a more balanced understanding of road safety, one that recognises the limitations of three-wheelers without turning their drivers into convenient villains. There is every reason to demand better vehicle standards, responsible driving and stronger enforcement, but those expectations must apply equally to motorists operating cars, buses, motorcycles and commercial vehicles. A reckless driver does not become less dangerous because he is seated inside an expensive car, just as a responsible three-wheeler driver should not be treated with suspicion merely because his vehicle has one wheel fewer.
The experience of that afternoon reminded me that our roads are shared public spaces, not a hierarchy determined by the price, size or appearance of the vehicles using them. The three-wheeler that took me to the bank served a practical purpose, while the driver of a more expensive vehicle created the only dangerous moment of the journey. It would be unreasonable to draw conclusions about all car drivers from that single incident, just as it would be unfair to judge an entire profession by the misconduct of a few three-wheeler drivers. If we genuinely want safer roads, perhaps we should begin by judging people according to how they drive rather than what they drive.
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Sampath Perera, LL.M. (UK), is an Attorney-at-Law and former Commissioner of the Office on Missing Persons (OMP). He has served as Legal Adviser to the Ministry of Justice and the Ministry of Higher Education.
Opinion
The Balance of power The valiant, the vain and the villain
by Bishop Duleep de Chickera
The Valiant
Centuries ago, the intervention of a Persian king, restored a degree of balance of power in the West Asian region. In the 6thc, BCE, Cyrus the Great of Persia, put a stop to the aggressive expansionism of the Babylonian empire and set the exiled Jews free.
After Cyrus’s death, his successor Darius was made aware of his predecessors’ plans to do even more. Commissioning some competent Jews, he fulfilled Cyrus’s intentions by restoring the ravaged city of Jerusalem and its venerated temple.
The Jews were overwhelmed. They would remember the valiant one who revived the essence of their nationhood. And so, the story of Cyrus the Persian, acknowledged as the ‘Anointed Deliverer’, the ‘Messiah’, came to be etched in the Jewish Scriptures (The Bible-Ezra 1- 6:15, Isaiah 44: 28, 45: 1-13).
Empire and Empires
This stirring story impacted Christianity as well. As former Jews, the earliest Christians were familiar with the hardship experienced under Babylonian imperialism. This led to the secret identification of the then brutal Roman Empire, as ‘Babylon’. The pseudonym worked so well that some Christian writings and communities applied it to other marauding forces that crushed peoples and looted their lands.
Vain politics
Today the world witnesses an ironic alliance of relentless bullying between the progeny of ‘Babylon’ and Jew. Together the US and Israel do to others what Babylon did to the Jews, and what their Book tells the Jews they are never to do to others.
The alliance’s agenda is straightforward. While one randomly ridicules and threatens sovereign nations, the other is quick to fabricate evidence that leads to the decimation of infants, children and unarmed civilians; all on the pretext of self-defence. Thereafter, security zones carved out on other people’s property mock what is left of International law, ‘friendly’ nations are intimidated into buying killing devices at thumping profits and military bases emerge on these territories in exchange for protection. The war with Iran, Cyrus’ Persia of today, is integral to this agenda.
Enter the villain
Iran, one of the most ancient and advanced civilisations of the world, has since its Islamic revolution of 1979 come under a despotic theocratic governance. It has crushed internal dissent and the clamour for participatory governance among its own people, prevented the growth of democratic institutions, trained and financed para-military forces to resist Israel’s settler colonialism and challenged the influx of western interests in the region. In return Iran has been relentlessly caricatured as global villain and subject to the wrath of the western mind- set and its propaganda industry.
The campaign to demonise Iran has been so clever that many of her neighbours who share a long cultural history, stand shoulder to shoulder today with vain intruders bent on crushing the only nation it cannot subdue, in a region they have no business to meddle in.
The nerve to be
Wars do strange things. They slaughter good men and women on all sides, cause chaos and misery wherever it spreads and never stops to explain to the children who survive, that this madness was simply to satisfy the egos of the vain.
But wars also change human perception. And there are signs that the current war on Iran, (It must never be the ‘Iranian war’, as it should never have been the ‘Korean war’, the ‘Vietnam war’, the ‘Afghanistan war’ and so on), is changing global perception.
Slowly, the devious stereotype of global saviours versus regional villain, is being redefined. While the hard questions on participatory, good governance must remain to haunt and transform Iran, the villain is now being acknowledged, however grudgingly, as the one nation that refused to back down in the face of global bullying. This too at tremendous personal cost to the lives of its people, infra-structure and future stability. In a world of cowardly political expediency, costly resistance attracts attention; even admiration.
There is more. The resilience of the vilified villain in the current war appears to have strengthened the nerve of the repeatedly humiliated European and British allies of the alliance, who at last learnt to say ‘no’. A first, to an ‘order’ to join an unprovoked and senseless far away war, backed with a second, when pressed to police the Straits of Hormuz. Typical of handling the playground bully, all it takes is for one little girl to hold her ground.
It does not stop here. Sheer desperation at Iran’s unsettling tenacity shamelessly drove Babylon into the arms of other neutral powers that it repeatedly ridicules and badgers with threats of tariffs and more tariffs. Regardless of a sudden demonstration of charming diplomacy, these nations would have no part in twisting Iran’s arm. Some instead, seized the opportunity to address Babylon on its arbitrary violation of International Law and warned it to refrain from global bullying. Since then, there have been less threats on the annexation of Greenland and interference in Cuba’s internal affairs.
The right balance
Like war does, resistance to war also does strange things. While the refusal to yield stimulates active defiance among some, and strongly worded objections from others, the outcome of the current conflict is hugely unpredictable. An independent, safe and stable region, made up of independent, safe and stable nations, is many, many courageous interventions and many, many wise negotiations away.
But one thing is clear. Isolated from its traditional allies, subject to straight talk from neutral nations and under growing pressure from saner elements at home, the vain find themselves uncomfortably seated as equals at one table. Here, Iranian geo- political strategies coupled with a measured readiness to return to arms in the event that table agreements are violated, will hold them; but for a while.
Given this footpath to a balance of power that Cyrus’s Persia of today has paved, it is now left to all who value the sovereignty and dignity of all nations, theirs included, and the indispensability of International law, to step out and help steer this momentum.
In the event that this happens, dismantling the visible acts of global bullying alone, will not be enough. The impulse of this crime, flourishing brazenly in the big businesses and assembly halls in the big cities of the world, and more subtly tucked away in the fabric of reputed places of learning, religiosity and leisure, will also have to be called out and neutralised.
Postscript
At the time of writing, a humanitarian crisis looms over Lanka’s southern seas. Historically renowned for her spontaneous hospitality even in the worst of times, Lanka finds herself constrained from responding to the desperate cries for supplies; water, food and fuel, from a stranded fleet of Commercial ships, simply because they fly the Iranian flag. Regrettably, Babylon’s typical threat of sanctions appears to be driving our economically vulnerable Island nation, to the brink of compromising our time tested right to be humane.
With peace and blessings to all
Opinion
Future of world religions
I refer to Dr Upul Wijayawardena’s recent letter on science and religion. I agree with him on the fate of religions in the modern world and would like to add the following observations on the evolution of religion and the advent of AI.
Religious philosophy evolved only in ancient India while it remained static with monotheism in other parts of the world. When the polytheistic Vedic religion arrived with Aryan migration to India, they found the ancient version of Jainism, which may have been practised over four thousand years as evidenced by some figures in meditation posture found in Mohenjo daro. By that time the indigenous religion had already abandoned the creator god or gods but still believed the mind as a permanent entity athman that survived death and continued in a cycle of reincarnation (samsara) due to results of any harmful action (kamma) even unintended performed in life collected in the athman. Salvation to a happy all-knowing permanent state named Kevala could be attained by the athman with extreme degree of self-mortification to destroy the past kamma attached to it, refraining from new kamma and developing the mind by meditation. As observed in progression from Veda to Upanishads the Aryan religion, evolution progressed with adoption of kamma, the cyclic existence of samsara, meditation and ethical behaviour in addition to prayer and sacrifice they practised for moksha.
The Buddha appeared in this philosophical atmosphere and denied both creator god and a permanent entity of athman. His psychology describes human behaviour based on the mind as a stream of changing consciousness. However, he accepted the cyclic existence of samsara; he said he verified the survival of consciousness at death with help of knowledge he gained from meditation. He prescribed a middle path to attain nirvana, a permanent state of happiness, avoiding self-mortification and redefined kamma to intentional activity only, both ethical and unethical resulting in bad and good results. He disagreed with the idea of kamma as the cause of rebirth. Following the Buddha, Vedantha religion reformed god to universal athman or brahman and evolved to modern Hinduism with a mixture of polytheism.
In his description of living beings in the universe, the Buddha has described some with a body made of fine material (brahma beings) in comparison to the gross material body of human and animal beings. One may assume the brahma body may not be carbon based.
The Buddha has also described living beings with physical body only (asannasatta) and another variety with mind only without a body (arupa satta). Therefore, it is not surprising to Buddhists that AI may evolve to become living beings if it develops a readily and freely available mobile source of energy and takes over the world with its superior capacity. AI already has information about Buddhist psychology. With that knowledge ‘AI beings’ may even become Buddhists not given to rituals.
According to the Buddha, brahma beings and asannasatta beings have very long lifespans as their bodies are not subject to decay and illness human beings develop. The new AI beings also may live as long as they wish because they may be able to repair themselves in case of developing physical defects. They would need only ethical behaviour to avoid destroying themselves by peaceful existence if they took over the world, as feared in some quarters.
However, as long as human beings exist in the world with death and uncertainty of what happens after death, they need a religion and rituals to give them psychological support. Even those who profess death is the end of life may have some doubt troubling their mind from time to time and may think of religion in times of adversity.
Ideally, human beings are free to accept one of the many versions of religious philosophies and respect each other’s choice and live in harmony. Unfortunately, extreme degrees of religious versions that cause division, unrest and violence will always continue to exist together with religions in the world.
Upali Abeysiri
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