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Over Rs 900 bn in uncollected taxes worries govt.

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Siyambalapitiya

Budget 2024: Govt. counts on MR to deliver required votes

By Shamindra Ferdinando

State Finance Minister Ranjith Siyambalapitiya yesterday (21) warned that President Ranil Wickremesinghe’s economic recovery plans would be derailed and the country would again plunge into crisis if the Opposition succeeded in defeating the 2024 Budget.

The Kegalle District MP asserted that even the resumption of the IMF’s USD 2.9 bn bailout package and ongoing talks on foreign and local debt restructuring could be jeopardized in the event of the government’s failure to muster the required support in the vote on the Second Reading of the Budget later in the day.

The Minister said so in response to The Island query whether the ruling SLPP decided to vote for the Budget against the backdrop of MP Namal Rajapaksa publicly criticizing the 2024 revenue proposals. The issue was raised at a media briefing held at the President’s Media Division (PMD).

A smiling State Minister declared that SLPP leader Mahinda Rajapaksa had assured support for the Budget. The declaration was made a few hours before the vote on the Budget. The State Minister said that anyone genuinely interested in carrying forward economic recovery plan initiated by President Wickremesinghe wouldn’t dare vote against the Budget. Those who pursued personal agendas would go all out to undermine the government, the State Minister said.

During his introductory remarks, the State Minister emphasized that the country was in such a precarious state, the government had no option but to expand the tax regime in line with its overall strategy to address the developing financial crisis.

According to the State Minister, at the time of the crisis, the revenue had been 8.3 % of the Gross Domestic Product (GDP) but by the end of this year it would reach 10.1% and by Dec next year, the government expected 12.3% revenue.

Dismissing growing criticism of the Budget as irrelevant, MP Siyambalapitiya said that some Opposition lawmakers wanted the government to enhance relief while some opposed the increase in taxes. The State Minister explained that VAT had been greatly expanded by reducing the list of items so far exempted by the indirect tax. The State declined to reveal the 85 items exempted from a list of 138 though he assured VAT wouldn’t be imposed on electricity.

The Island sought an explanation from the State Minister regarding recent statement issued made by the Committee on Public Accounts (COPA) that taxes, penalties and interest amounting to Rs 943 bn were yet to be collected by the Inland Revenue Department (IRD). The refusal by the IRD to fully takeover and operate the Revenue Administration Management Information System (RAMIS) installed a decade ago was also raised. In addition to that The Island pointed out COPA expressing concern over proper collection of VAT (Value Added Tax) against the backdrop of the government’s decision to increase that particular tax from 15% to 18%.

MP Siyambalapitiya said that out of Rs 943 bn in uncollected taxes, 82% had been held up pending the conclusion of the legal process. The State Minister said that though the progress was slow the government couldn’t do anything about it.

“We couldn’t force them to pay. They have an opportunity even to seek the intervention of the Supreme Court,” MP Siyambalapitiya said, adding that the amount referred to by COPA was the amount to be collected during the past two decades.

Referring to the Customs, the State Minister said that out of the Rs 60 bn yet to be collected by Customs, 95% was owed by state institutions.

Commenting further on the RAMIS project, the SLPPer said that the change of tax regime thrice during the past decade affected the operation of the system. The project had been also halted for want of funds, the State Minister said, expressing confidence a fresh initiative meant to complete the project was underway.



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Govt. confident of 2/3 majority despite NPP split speculation

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Anura / Harini

By Shamindra Ferdinando

The ruling NPP yesterday (21) dismissed claims of a widening rift, within the government, over the proposed 22nd Amendment. Asked whether the NPP was concerned over a section of the Opposition alleging Prime Minister Dr. Harini Amarasuriya and two dozen MPs taking a view contrary to that of the party in this regard, authoritative party sources said some persons were propagating speculation for their own interest.

Declaring that there was absolutely no issue regarding the controversial Amendment, sources emphasised once it was tabled in Parliament, it would be passed with 2/3 majority.

Sources dismissed claims that out of its 159-member parliamentary group a section of NPPers was opposed to the government move. According to an influential Opposition activist, there are 57 JVPers and 66 NPPers in the government group and the rest contested the last parliamentary polls, having aligned with the JVP.

Ministerial sources told The Island that the government was confident of going ahead with the 22nd Amendment and Judicature (Amendment) Bills. Sources said that the NPP was not bothered about the Opposition protests in and outside Parliament.

Speaker Dr. Jagath Wickremaratne is expected to disclose the confidential ruling that he received from the Supreme Court in respect of more than 65 petitions for and against the 22nd Amendment and Judicial Amendment Bills. The enactment of the 22nd Amendment would pave the way for extending the retirement age of Supreme Court judges, from 65 to 67 years, and Court of Appeal judges, from 63 to 65 years.

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Justice Corea appointed Acting President of the Court of Appeal

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Court of Appeal Judge M. Sri Mevan Anthony Edirimannasuriya Corea receives his letter of appointment

President Anura Kumara Dissanayake has appointed Court of Appeal Judge Mayadunna Sri Mevan Anthony Edirimannasuriya Corea as the Acting President of the Court of Appeal.

The appointment has been made as President’s Counsel Nalin Rohantha Abeysuriya, who currently serves as President of the Court of Appeal, will be overseas until the 24th.

Accordingly Justice Mayadunna Corea was sworn in as Acting President of the Court of Appeal before President Anura Kumara Dissanayake at the Presidential secretariat last morning (21).

Secretary to the President Dr Nandika Sanath Kumanayake was also present at the occasion.

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Protest against setting up of cement factory in highly populated area near BIA

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The cement factory premises located in close proximity to a school and the lagoon

… school alleges deception

What began quietly as a single-storey tourist hotel, on the edge of Katunayake-Seeduwa has, five years later, morphed into a looming five-storey cement factory and with it, a storm of fear, anger and unanswered questions.

At a media briefing held on 19 September at St. Thomas International School, Seeduwa, the community finally found its voice. The gathering included priests, school principals, environmental defenders, and parents whose children study within a few hundred metres of the site.

The briefing was led by Rev. Fr. Jude Chrishantha Fernando, Director of National and Archdiocesan Catholic Social Communications, Rev. Fr. Nilantha Heshan, Director of the Archdiocesan Sethsarana Institute, Dinusha Nanayakkara, Convener of the Archdiocesan Committee for the Protection of Muthurajawela, and Attorney-at-Law Ms. Isuri Rodrigo.

Their message was clear: This is not a campaign against development.

“We Are Not Against Cement. We Are Against Deception.”

“Cement is an essential raw material for the country. We have no opposition to any such factory or production plant,” they told the media. “But what we cannot agree to is a project of this magnitude, in this location, without any proper environmental assessment.”

The speakers alleged a textbook case of deception, obtaining approvals for a low-impact tourist hotel, in one of the most densely populated educational zones in the Katunayake-Seeduwa Municipal Council area, and then transforming it into a heavy industrial plant.

“In an area where thousands of schoolchildren study, to show one thing on paper and build another is a highly fraudulent procedure. It is clear that the real environmental damage and the truth have been hidden from the people,” they said.

With the sea and lagoon winds that sweep across Seeduwa, experts fear these fine particles will not stay confined to the factory walls. They will drift across classrooms, homes, and the Katunayake Free Trade Zone, where thousands of workers, representing all 25 districts of Sri Lanka, work every day.

“The risk is not local. It is national. We are talking about a future generation of children with respiratory illnesses, and workers developing chronic breathing disorders,” one speaker warned.

Rev. Fr. Jude Chrishantha Fernando, Director of National & Archdiocesan Catholic Social Communications, responding to journalists

Then there is the proximity that defies logic, just 500 metres from the Bandaranaike International Airport.

The panel presented a scientific concern that has aviation experts worried: a significant drop in air quality around the airport and its runway, and the severe risk to highly sensitive aircraft engines when they ingest air mixed with cement dust. What is at stake, they argued, is not just health but the economy itself.

“When you weigh it deeply, the economic contribution of an international airport is far higher than that of a cement factory. If international airlines start to avoid Katunayake due to safety and air quality concerns, it will be a fatal blow to our country’s economy,” they emphasised.

A few minutes away lies another victim the Negombo Lagoon and the Muthurajawela wetlands, Sri Lanka’s largest and most sensitive coastal ecosystem.

The panel warned that cement dust settling on the mangrove system could degrade water quality, disrupt the delicate salinity balance, and directly interfere with fish breeding grounds. For the fishing communities of Negombo, whose lives depend on the lagoon, this is an existential threat.

“The lagoon is a nursery. If its water quality drops, fish will not breed. If fish do not breed, an entire fishing community collapses,” they said.

The speakers alleged that while the developers claim to have approvals from various state institutions, many of the mandatory clearances, particularly comprehensive Environmental Impact Assessments and feasibility reports, have not been obtained.

They stressed they are not calling for an end to investment, but for it to be done right.

“We have no objection to this factory being started in another suitable location where it will not cause these environmental impacts, based on proper feasibility and assessment reports. Stop this construction here and move it,” was the unanimous demand.

The appeal has now been directed again to the President, the government, and all responsible state institutions and officials.

As the briefing ended, one image lingered — a school playground, a lagoon, and a towering cement structure rising between them. It is a scary picture for the people of Seeduwa; they asks a simple question: What price are we willing to pay for development that doesn’t breathe?

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