News
Controversial Social Security Contribution Bill put off due to resistance from Opposition
By Saman Indrajith
The government yesterday decided to put off the Social Security Contribution Bill when the JVP and the SJB, in Parliament opposed it vehemently.
The Social Security Contribution Levy Bill had been listed for the second reading debate, and Parliament sources said that the party leaders had agreed to pass the Bill with several other regulations, without debate to save time for another debate, listed for the day, on current nutritional problems of children and women.
When the Leader of the House and Education Minister got up to present the Bill for the approval of the House, JVP leader, Anura Kumara Dissanayake, said that the Bill would place an additional tax burden on people. “The government keeps on levying taxes on people. The government’s excuse is that it does not have money. There is a financial crisis. Then it should first take action against former Central Bank Governor and ex-Finance Minister Basil Rajapaks for bankrupting the country. What action are you going to take against them?” Dissanayake queried.
The JVP leader said that the Bill envisaged introducing a social security tax. “The government keeps shifting the burden on to people. It increased the VAT from 8 percent to 12 percent and then most recently to 15 percent. Prices of all essential commodities including medicines, have gone up. There is a new tax called social security tax of 2.5 percent on the turnover. This turnover tax is on importation, production, selling and services. This tax is applicable to all fields of the economy. One who owns an industry, covering all these aspects, will have to pay 2.5 percent in importing, another 2.5 percent for 85 percent of the production and this tax will be levied again in distribution and selling. Thus, this tax is like a compound tax. With 15 percent VAT, this new addition will result in an increase of tax cost to around 20 percent. People are in great difficulty owing to the existing taxes. This is very unfair and unjust. No action has been taken against those who caused this crisis.”
“We are against this Bill,” Dissanayake said.
SJB MP and Chairman of the Public Finance Committee Dr. Harsha de Silva also opposed the the Bill.
He said it was not proper to enact a Bill without presenting a review of it.
He said that the Public Finance Committee did not approve any Bill without reviewing it. “However, we had to approve the Social Security Contribution Bill as we were informed that it was urgent.”
MP de Silva said that the Bill required some amendments and it could not be approved without perusal.
He said that the amendments to the Bill had been proposed without the approval of the committee.
“In other countries, they have either VAT or Turnover tax. You cannot have both. An accounting firm predicted that this 2.5 percent could go up to seven percent in the process. I agree with MP Dissanayake. This is an unfair tax.”
Dr. De Silva said the property sales business had been taken out of the list of enterprises to be taxed by the social security tax. “That is to help the rich. You are taxing the poor while giving exemptions to the rich. This is an unjust act,” he said.
Responding to the opposition MPs, Leader of the House Minister Susil Premajayantha proposed the postponement of the vote on the Social Security Contribution Bill to Thursday.
The Colombo Central Bus Stand, which has a history of over six decades and had remained without a proper maintenance for many years, has now been renovated under the current government’s development programme and vested to the public. Following that, the Prime Minister undertook an inspection tour of the newly renovated Colombo Central Bus Stand.
Originally constructed in 1964, the bus stand was refurbished with modern facilities to meet current needs and was officially reopened to the public on April 8. The primary objective of this initiative is to provide passengers with a higher-quality and more comfortable transportation service.
During the renovation process, special attention has been given to the comfort and safety of women, which was commended by the Prime Minister. In particular, a modern rest area designed to ensure privacy for nursing mothers travelling from distant areas received special praise.
The Prime Minister also reviewed the newly introduced passenger seat reservation system and information services established to assist commuters. In addition, the modern surveillance unit and other security measures installed within the premises to ensure passenger safety were also inspected.
During the visit, the Prime Minister engaged in conversations with passengers at the bus stand and inquired about their views on the newly renovated facilities and the quality of transport services.
It was emphasized that the government’s objective is to transform public transportation into a safe, technologically advanced service that can be used with convenience by all citizens.
(Prime Minister’s Media Division)
Latest News
Sun directly overhead Nagawilluwa, Galgamuwa, Sigiriya, Palugasdamana and Mankerni about 12:11 noon today (10)
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the 05th to 15th of April in this year.
The nearest areas of Sri Lanka over which the sun is overhead today (10th) are Nagawilluwa, Galgamuwa, Sigiriya, Palugasdamana and Mankerni about 12:11 noon.
No-faith motion to be taken up today
Former Foreign Minister Prof. G. L. Peiris yesterday (9) said that President Anura Kumara Dissanayake should remove Energy Minister Kumara Jayakody unless the minister stepped down on his own.Prof. Peiris, addressing a press conference called by the Opposition, said that Jayakody couldn’t under any circumstance continue to serve as a minister after the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) moved the Colombo High Court against the government member over a previous financial scandal.
Pointing out that Minister Jayakody had been indicted of a corrupt deal struck during the yahapalana regime, Prof. Peiris said it was wrong for the NPP to retain him as a minister, claiming that the offence was not committed during his tenure as a Cabinet minister in the current government.
Prof. Peiris and several other Opposition members dealt with the No-Confidence Motion (NCM) against Jayakody that would be taken up today (10) with the academic calling the vote an acid test for the NPP. Having campaigned on an anti-corruption platform at presidential and parliamentary polls, the NPP couldn’t protect Jayakody though he was widely believed to be close to President Dissanayake.
As the Manager of the Procurement and Import Division of the Ceylon Fertilizer Company, Jayakody is alleged to have committed the offence of corruption, according to CIABOC.
Jayakody has been accused of causing a loss of Rs. 8,859,708 to the State by influencing and exploiting the procurement process.
Following the serving of indictments on 27 March, the judge ordered Jayakody’s release on two personal bail bonds of Rs. 1 million each. The court directed that the defendant’s fingerprints be obtained and a formal report be submitted. The case has been scheduled for a pre-trial conference on 6 May.
Prof. Peiris stressed that the CIABOC action against Jayakody is central to the NCM primarily moved over the irregularities ridden coal procurement process launched in 2025 that caused severe disruption to the power generation. Responding to The Island query after the media briefing, Prof Peiris expressed surprise that the JVP/NPP accommodated a person under investigation by the CIABOC. Having taken an utterly irresponsible decision, the JVP/NPP were now playing down the developing issue, prof. Peiris said.
The entire government parliamentary group faced the prospect of having its image tarnished by defending Jayakody, the former lawmaker said.
Prof. Peiris said that they intended to build a campaign around the issues involving the energy minister to expose the government. With yet another electricity tariff hike in the offing due to the growing demand for thermal generation as a result of coal-fired Lakvijaya power plant’s failure to meet the requirement[RA1] , the energy minister and ministry’s performances have to be examined, Prof. Peiris said.The timely release of the Auditor General’s report on controversial coal procurement should compel the government to decide on the energy minister’s fate or be prepared to face the fallout.
By Shamindra Ferdinando
PM on inspection tour of newly renovated Colombo Central Bus Stand
Israel to hold direct talks with Lebanon but no ceasefire, Netanyahu says
Sun directly overhead Nagawilluwa, Galgamuwa, Sigiriya, Palugasdamana and Mankerni about 12:11 noon today (10)
Showers expected in the Western, Sabaragamuwa, Southern and Uva provinces and in Kandy and Nuwara-Eliya districts after 2.00 p.m
Opposition tells Minister Kumara Jayakody to resign
Coal tender scandal: FSP to move court against illegal deals
‘Dates have the highest sugar content to fight Coronavirus’
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