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Labour Minister opposes govt. move to tax EPF, ETF

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By Saman Indrajith

Minister of Labour Nimal Siripala de Silva told Parliament yesterday that the Ministry of Labour was opposed to taxing the Employees’ Provident Fund.

Responding to a question raised by Opposition Leader Sajith Premadasa on the proposed surcharge on superannuation funds, demanding that a gazette, announcing the Surcharge Tax Bill be withdrawn, Minister de Silva said: “My stance on this matter is clear and it has already been announced. The origin of this issue is not the gazette. The Inland Revenue Department has said the income earned by investing EPF and ETF money should be taxed. Yet, our ministry’s position is clear: the EPF and ETF should not be taxed and the position of the Inland Revenue Department is wrong. We have informed the Treasury that this definition should be amended. We have also informed the Commissioner of the Department of Inland Revenue. We informed them of our position months ago,” the minister said.

Opposition Leader Premadasa: I am thankful to the minister for his honesty. The minister has told this House that his ministry is opposed to this. Then, how could the Finance Ministry issue a gazette of this nature?

UNP Leader Ranil Wickremesinghe: We must discuss this matter in the party leaders’ meeting and thereafter we can debate it here to prepare a draft to submit for the approval of Parliament to ensure that both EPF and ETF are exempted from the taxes.

Chief Opposition Whip Kandy District MP Lakshman Kiriella: We demand a debate on this matter. This is fundamentally wrong because this leads to double taxation. An EPF beneficiary would be taxed for the amount of his money. Those receiving EPF face double taxation as a tax is imposed when withdrawing the funds and the Fund will be taxed again on investments. Double taxation is against the law. Therefore, we demand a debate on this matter.

Trade Minister Bandula Gunawardena: It is during the Yahapalana time this new income tax law was passed. It is according to that law these regulations are introduced. You passed the wrong law removing the tax exemptions given to these funds.

Sports Minister Namal Rajapaksa: The new circular in question was issued as per the provisions of the Inland Revenue Act No 24 of 2017. It was your government that brought this Act. It is wrong for you to speak as if you do not know the matter. MP Kiriella demands a debate on the economy stating that he does not know of the prevailing economic situation. In the meantime, he tells in the meetings outside parliament that the economy is collapsing.

Chief Opposition Whip Kandy District MP Lakshman Kiriella: Minister Namal Rajapaksa said that it was as per the provisions of an Act passed during our time that the taxation was introduced. I ask him to read to this House the particular section from that Act enabling taxation. I challenge him to show us such a section. Can you do that?

Minister Namal Rajapaksa: Minister Bandula Gunawardena will read out the particular section to this House tomorrow.

The Chief Opposition Whip: He spoke of a section, but he does not know where it is. He does not know what he spoke of.

Earlier in the day, leader of the opposition Premadasa said the country’s current foreign reserves available for importing goods were only sufficient for three weeks. The government had failed to address the matter in the House. The government had imposed a 25 percent tax on Sri Lanka’s largest fund, the Employees’ Provident Fund, which is worth Rs.3 trillion, which generated a profit of around Rs. 250 billion. The Minister of Finance is attempting to misappropriate funds belonging to the public for implementing the ‘100,000 Projects’ through the Budget’s rural development programme.

He demanded to know whether the government was attempting to misappropriate funds amounting to Rs.65 billion from the EPF.



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India should be kept out of PC polls, matters related to 13 A – Mano

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Mano

Leader of the Tamil Progressive Alliance (TPA), Mano Ganeshan, MP, said that India shouldn’t intervene here regarding the long-delayed Provincial Council polls.

The former Yahapalana Minister of National Co-existence, Dialogue and Official Languages (2015-2018), Ganeshan, who represents the main Opposition Samagi Jana Balawegaya (SJB) in the current Parliament, stressed that New Delhi’s intervention wouldn’t do any good for them or for us.

Lawmaker Ganeshan said so when The Island asked him whether the TPA would ask India to pressure the NPP government to conduct PC polls, last held in 2014, during Mahinda Rajapaksa’s second term. Ganeshan said: “India shouldn’t get involved in the issue at hand . Such a strategy is also in their interest, particularly in the context of the evolving global order. India should not be perceived as a pro-Tamil state, but rather as a state that supports Sri Lanka as a whole.”

Ganeshan said that the Indian state bears a moral responsibility in this matter. “That responsibility arises from the fact that India’s diplomacy and military intervention played a decisive role in neutralising the Tamil armed struggle in Sri Lanka. Although India’s mission remained unfinished, it nevertheless lost nearly two thousand soldiers in the process. There was also a prelude to this involvement, when Tamil militant groups received training in India. Consequently, the Indian connection became a sensitive issue for both the Sinhalese and Tamils of Sri Lanka.”

But, whatever had happened, the national issue should be settled among us. ” The solution must be found and settled within Sri Lanka itself. We do not need Western interventions in this regard.”

” In recent years, whenever we in the Tamil Progressive Alliance (TPA) have met Indian dignitaries—including the Prime Minister, the External Affairs Minister, and, most recently, the Vice President—the subjects of the 13th Amendment and Provincial Councils have never featured on our agenda.”

The 13th Amendment is part of Sri Lanka’s Constitution. Therefore, it is for Sri Lankans themselves to decide whether to retain, improve, fully implement, reform, or even repeal it, Ganeshan said.

MP Ganeshan found fault with those who represented the Northern and Eastern provinces for failing to utilise the goodwill and influence India enjoyed with successive Governments of Sri Lanka to pursue an amicable political settlement. The parliamentarian said that they should acted after the end of the war in May, 2009. Unfortunately, they failed to effectively use the Provincial Council framework to consolidate their political position and advance further, thereby earning the confidence of both India and successive Sinhala-majority governments, MP Ganeshan said.

Responding to another query, MP Ganeshan said: “

We should keep the ethnic issue separate from bilateral relations with India, while deepening economic connectivity and cooperation on the basis of mutual benefit and a win-win partnership.”

By Shamindra Ferdinando

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US boost for SLAF

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Helicopters from the US. (Pic courtesy SLAF)

Sri Lanka has taken delivery of 10 TH-57 ‘Sea Ranger’ multi-role helicopters provided by the United States of America to the Sri Lanka Air Force. Air Forces headquarters said that the helicopters arrived here by sea.

The SLAF has said: “The arrival of these aircraft marks a significant milestone in the longstanding defence cooperation between Sri Lanka and the United States and represents a valuable contribution towards enhancing the operational and training capabilities of the Sri Lanka Air Force.

“The helicopters are currently undergoing configurations and technical preparations at SLAF Base Ratmalana. Following the completion of requisite inspections, acceptance procedures and test flights, the aircraft will be inducted into service and deployed for operational duties.

“The TH-57 fleet is expected to significantly strengthen the Air Force’s aviation training capacity while enhancing the ability to support a broad spectrum of national requirements. The aircraft will primarily be employed for pilot training, humanitarian assistance and disaster response (HADR) operations, search and rescue (SAR) missions and other public service commitments undertaken by the Sri Lanka Air Force.”

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TPA demands House committee to probe Tilvin’s claim PC polls cannot be held due to fund constraints

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Harsha

Referring to the recent declaration made by JVP General Secretary Tilvin Silva that the Provincial Council elections couldn’t be held this year as funds allocated for that purpose were utilised to provide Ditwah cyclone relief, Tamil Progressive Front (TPA) leader Mano Ganeshan, MP, has asked Dr. Harsha de Silva, MP Chairman, Committee on Public Finance, to inquire into the issue at hand and take action deemed appropriate.

The text of MP Ganeshan’s letter: “I write with reference to a statement reportedly made by Tilvin Silva, General Secretary of the Janatha Vimukthi Peramuna (JVP), the principal constituent party of the National People’s Power (NPP) Government.

According to media reports, Silva stated, in substance, that funds allocated and set aside for the conduct of Provincial Council Elections had been utilised by the Government for disaster-rebuilding and related purposes.

While he is reported to have made further remarks, I confine my attention to the above statement, which raises a serious matter concerning public finance and parliamentary oversight.

To the best of my knowledge, Parliament has not approved any transfer or reallocation of funds, earmarked for Provincial Council Elections, to any other expenditure head or purpose. If the statement, attributed to Mr. de Silva, is accurate, it may indicate that such funds have been utilised without the requisite parliamentary authorisation.

In view of the above, I respectfully request that the Committee on Public Finance inquire into this matter and ascertain whether any transfer, reallocation, or expenditure of funds allocated for Provincial Council Elections has occurred in a manner inconsistent with parliamentary approval and financial regulations.

I would be grateful if the Committee could examine the facts and take any action deemed appropriate within its mandate.”

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