News
Imposing 30% tax on EPF/ETF makes workers paupers – Eran
SJB MP Eran Wickramaratne strongly criticized the Wickremesinghe-Rajapaksa decision to impose a 30% income tax on EPF/ETF, regardless of opposition from some political parties, trade unions and civil society. This tax will apply on all of EPF/ETF income, without any tax relief. Therefore, even an employee earning a monthly salary of Rs. 30,000 will be liable to bear the tax of 30% on their savings on EPF/ETF. “Is this justified at a time the vast majority of people were struggling to make ends meet”, Wickramaratne asked.
The government declared the economy bankrupt and entered into an agreement with the International Monetary Fund to obtain a loan of US $ 3 billion. Restructure of the country’s debt is a condition involved.
Foreigners invest in bonds of small countries looking for more income, absorbing the risk factor. Having already profited from the high interest/income, restructuring of said loans does not bear significant consequences to the investors. The government has already declared bankruptcy and have stopped repaying foreign debt, including bonds. Although it was initially announced that the foreign bond will be restructured, the government recently postponed the discussion with foreign investors for the second time. However, it is foreign debt that is best restructured.
Instead, the government has prioritised domestic debt restructuring. This is an injustice to the people of the country. The value of their investments has already taken a hit from inflation and devaluation of currency.
If the government does not act wisely, in relation to the restructuring of bonds, Wickramaratne, a former banker says that the government will not be able to successfully resolve the financial crisis.
All MPs of the present government supported this motion for domestic debt restructuring. But, the Opposition is vehemently opposed to local debt restructuring as it is not a good strategic move. The debt restructuring is not equitable in terms of local and foreign bond holders. It is also not equitable between EPF holders as opposed to private individuals, businesses, banks and primary dealer who have been unfairly favoured. It is to be noted that the EPF/ETF has been unfairly targeted in the process of domestic debt restructuring.
At the end of 25 – 30 years of employment, the EPF holder bears an accumulated reserve with low interest. It is estimated that the monthly return will cover between 20% – 35% of an individual’s cost of living in retirement. The proposed 30% tax on EPF will further reduce income.
Wickramaratne declared that the Rajapaksa–Ranil rule makes the poor, poorer and the rich, richer. On the other hand, cronies are given rebate, concessions and tax exemption. SJB disagrees with the proposed government policy of imposing 30% tax on EPF/ETF.
The official appointment letters for the members of the newly established “Cricket Transformation Committee” (CTC) were handed over on Monday (04) by the Minister of Youth Affairs and Sports, Sunil Kumara Gamage.
The following members received their letters of appointment at the Ministry premises:
Sidath Wettimuny
Thushira Radella
Prakash Schaffter
Ms. Avanthi Colombage
The Ministry also noted that veteran cricketers Roshan Mahanama and Kumar Sangakkara, who are key members of the committee, are currently overseas. Their official appointments will be formalised immediately upon their arrival in Sri Lanka.
The Cricket Transformation Committee has been mandated to oversee the administration and drive structural reforms within Sri Lanka Cricket (SLC) in accordance with the powers vested in the Minister under the Sports Act No. 25 of 1973.
Three prison guards attached to the Welikada Prison have been arrested by Borella Police following the death of an inmate on Monday (04).
‘Bar Association must reveal its stand’
Civil society group ‘Free Lawyers’ has requested Chief Justice Preethi Padman Surasena to probe whether political pressure was brought on a Magistrate, or a High Court Judge, in respect of an ongoing high profile case.
Speaking to The Island on behalf of ‘Free Lawyers,’ Rajith Keerthi Tennakoon said that they felt the urgent need to seek the CJ’s intervention, following the May Day declaration by President Anura Kumara Dissanayake that the verdict of a case that was heard on 30 April would be given on 25 May. Tennakoon said that addressing the NPP’s main May Day rally at Maharagama, the President asked the people to be ready to celebrate that verdict. The President couldn’t have said so if he hadn’t been aware of the impending verdict, Tennakoon said, while emphasising the responsibility on the part of the Bar Association to state its position on the issue.
‘Free Lawyers’ recently captured pubic attention following its exposure of the theft of USD 2.5 mn from the Treasury.
Responding to a query, Tennakoon said that on behalf of ‘Free Lawyers,’ Maithri Gunaratne, PC, on Monday, 4 April, wrote to both CJ Surasena and President of the Bar Association Rajeev Amarasuriya.
Alleging that President Dissanayake’s declaration caused immense harm to the independence of the judiciary and raised controversy over the judgement that would be given on 25 May, ‘Free Lawyers’ organisation also asked the CJ to inquire into whether the entire judicial process was under political pressure.
Tennakoon said that they expect the Bar Association to reveal its position on President Dissanayake’s statement. Tennakoon pointed out that during the May Day address, President Dissanayake made reference to 15 cases that were to be taken up during this month, whereas Transport, Highways and Urban Development Minister, as well as Leader of the House Bimal Rathnayake, mentioned nearly 10 names of politicians, both sitting and former lawmakers, to be summoned beginning, May.
Tennakoon said that the NPP appeared to have used May Day to counter growing accusations over the Colombo port container controversy, coal scam, Rs 13.2 bn NDB fraud and theft of USD 2.5 mn from the Treasury and USD 625,000 from the Sri Lanka Postal Service.
By Shamindra Ferdinando
Members of Sri Lanka Cricket Transformation Committee Officially Appointed
Three prison guards arrested following the death of an inmate
Showers or thundershowers will occur at most places of the island after 1.00 pm.
CJ urged to inquire into AKD’s remarks on May 25 court verdict
ITAK MPs representing East take their woes to Canadian HC
People demand release of Keppapilavu land
‘Dates have the highest sugar content to fight Coronavirus’
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