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Govt. urged to crack down on tax evaders instead of taxpayers, says MP Harsha de Silva

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Harsha Silva

SJB MP and Chairman of the Committee on Public Finance, Harsha de Silva, on Thursday (02), urged the government to take action against tax evaders instead of harassing law-abiding taxpayers.

According to MP Harsha de Silva, the government expected to collect Rs. 718 billion as corporate and personal income taxes for 2023, but as of October 16, 2023, the actual collection had reached only Rs. 495 billion. However, in a surprising contrast, PAYE taxes, which were projected to yield 100 billion rupees, had already exceeded expectations, bringing in 119 billion rupees. Therefore, he proposed to amend the current PAYE tax structure, as the government would go on to collect 125 billion rupees at the current compliance level and 175 billion rupees at a 100% compliance rate.

Furthermore, withholding tax collections exceeded expectations, he said. The government had anticipated 90 billion rupees but collected almost 122 billion rupees, showcasing that forcibly enforced taxes are being collected, while voluntary compliance remains substantially low.

MP Harsha also highlighted significant shortfalls in other tax categories. The Betting and Gaming levy, expected to generate 10 billion rupees, only managed 5.6 billion rupees. Similarly, Value Added Taxes (VAT) were projected to contribute 553 billion rupees, but collections stand at 350 billion rupees, with concerns raised about the upcoming VAT changes.

“This discrepancy in tax collection calls into question the government’s approach to fiscal-based revenue consolidation. It prompts concerns about the fairness of increasing taxes on honest taxpayers while allowing a significant portion of potential revenue to go uncollected from tax evaders. Moreover, the inconsistency in tax policies, with the same individuals who reduced taxes to 8% in 2019 now responsible for an 18% increase, further deepens public skepticism about the government’s policy direction,” he said.

MP Harsha de Silva also cited an example from the Excise Department, where the government had aimed to collect 217 billion rupees, inclusive of liquor tax, tobacco tax, sticker tax etc. However, the actual collection stands at just 124 billion rupees, creating a substantial 92 billion rupees shortfall.

“My comments serve as a wake-up call for the government to address the issue of tax evasion and to rethink its approach to tax collection. Prioritizing the collection of taxes from tax evaders rather than increasing the burden on law-abiding citizens is crucial for a fair and equitable tax system. The public is now looking to the government to take action to rectify the situation and ensure a more balanced and just tax system for all,” he said.



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New Chancellor appointed to General Sir John Kotelawala Defence University

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President Anura Kumara Dissanayake has appointed Air Chief Marshal Kolitha A. Gunathilake (Retd.) as the new Chancellor of General Sir John Kotelawala Defence University.

The letter of appointment was presented to Air Chief Marshal Kolitha A. Gunathilake (Retd.) by Secretary to the President Dr Nandika Sanath Kumanayake at the Presidential Secretariat on Monday (05) afternoon.

Air Chief Marshal Kolitha A. Gunathilake(Retd.) has served as Commander of the Sri Lanka Air Force and as Chief of Defence Staff.

(PMD)

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Govt. urged to halt ‘illegal’ presidential pardons

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Ven. Gnanasara Thera reacts as prison officers escort him out of the Court of Appeal, which yesterday (05) ordered the sixyear prison sentence imposed on him in 2018 to take effect.

By Shamindra Ferdinando

The government is coming under pressure from civil society organisations to formulate a clear ‘mechanism’ to deal with requests for presidential pardons.

Representing civil society organisations, Gamini Viyangoda yesterday flayed the NPP government for the delay in taking action against Ven. Galagoda Aththe Gnanasara Thera, after the Supreme Court declared the 2019 presidential pardon granted to him by President Maithripala Sirisena null and void. He said successive Presidents had abused their executive power to release convicted persons from prison.

Purawesi Balaya activist Viyangoda pointed out that the Supreme Court ruled that President Sirisena had acted arbitrarily and failed to independently consider the relevant materials before exercising his executive power.

The Court of Appeal, in August 2018, sentenced Gnanasara Thera, General Secretary of the Bodu Bala Sena (BBS), to six years rigorous imprisonment for contempt of court over his conduct during proceedings concerning missing journalist Prageeth Ekneligoda. Viyangoda said that those who had been affected by the monk’s conduct have the right to know on what basis the President released him, in May 2019.

The Court of Appeal yesterday (05) ordered the relevant authorities to enforce the remaining period of imprisonment imposed on the Thera.

Gnanasara Thera, who had been subject to an open warrant for his arrest, was produced before the Court of Appeal, today, by prison officials.

Having considered the submissions made before it, the Court of Appeal directed the Commissioner General of Prisons to take the necessary steps to enforce the remaining period of the sentence imposed on Gnanasara Thera. Police on Saturday (03) apprehended the monk at a forest monastery in Kalutara. The Colombo Magistrate’s Court on Sunday (04) ordered the Thera to be remanded in custody till Monday.

Appearing for Gnanasara Thera, Attorney-at-Law Iresh Seneviratne, together with Attorney-at-Law Pasan Karunaratne, told the court yesterday that his client had been experiencing severe mental distress and had therefore gone to an ‘Aranya Senasanaya’, where he had been staying.

Viyangoda said that examination of presidential pardons, executed over the years, would reveal how successive leaders exploited the executive power to appease their own. Responding to The Island queries, Viyangoda said that Sirisena, in Sept. 2019, just two months before the presidential election, granted Jude Shramantha Jayamaha a Presidential pardon.

Jude Shramantha Jayamaha was sentenced to 12 years by the High Court, but the Court of Appeal revised that sentence to death, in July 2012, which the Supreme Court later upheld. Viyangoda said that though the Supreme Court, in June 2024, declared that the particular Presidential action was illegal and arbitrary, law enoforcement authorities were yet to take tangible measures to enforce the court directive.

Viyangoda stressed that no President should exercise the right to pardon a convicted on his or her own without following laid out procedures. According to him, Sirisena appeared to have simply ordered the monk, and the convicted murderer, released in response to appeals received by him. A comprehensive investigation could identify those who had been involved in these wrongdoings.

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GL urges cautious handling of Saudi death row case, blasts govt. over BRICS affair

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Prof. Peiris

Convenor of Janathawadi Joint Opposition, Prof. G. L. Peiris, yesterday (05) emphasised the responsibility on the part of the government and others to act cautiously when making representations in respect of Sivarasa Anojan facing death sentence in Saudi Arabia over a controversial social media post.

Addressing the media at former President Ranil Wickremesinghe’s Flower Road Office, Prof. Peiris emphasised that whatever representations should be made through the Foreign Ministry.

The one-time External Affairs Minister warned of dire consequences of political party leaders, members of Parliament and civil society making direct representations and trying to get in touch with various Saudi authorities over the phone.

Prof. Peiris said that those who intervened on behalf of Anojan should keep in mind that Sri Lanka should be mindful of the Saudi way of governance and sensitivities.

The former Minister questioned the circumstances Sri Lanka was left out of the recent BRICS summit held in New Delhi. He recalled how former President Wickremesinghe discussed Sri Lanka’s entry into BRICS with Russian President Putin and received an invitation for the Summit there but as a result of the change of government, in Sept. 2024, Sri Lanka ignored that invitation.

That resulted in Sri Lanka being left out from the New Delhi summit, Prof. Peris said.

Prof. Peiris pointed out the absurdity in sending the Foreign Secretary to the BRICS Summit in Russia instead of the President, PM or the Foreign Minister to represent the country.

Referring to the forthcoming conclusion of the current IMF programme, initiated during Wickremesinghe’s time, Prof. Peiris said that Sri Lanka lost a great opportunity to benefit from BRICS by failing to represent the country at a higher level at the Russian summit.

The BRICS nations established the New Development Bank (NDB), originally called the BRICS Development Bank, Prof. Peiris said.

Dismissing NPP government’s explanation regarding Iranian ships awaiting necessary supplies but deprived by US imposed restrictions, the former Minister strongly criticised the administration’s response. According to him, this government responded in a similar manner when the US sank an unarmed Iranian frigate just outside Sri Lankan territorial waters in March this year.

Prof. Peiris declared that the government’s assertion that the US restrictions weren’t only directed at Sri Lanka but all Iranian vessels in other regions as well was not acceptable (SF)

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