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Rs. 773 bn arrears: Go after massive tax dodgers before imposing new taxes – GMOA

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=AG alleges Inland Revenue withheld info citing Constitution

By Shamindra Ferdinando

The Government Medical Officers Association (GMOA) yesterday (02) asked the government to explain its continuing failure to recover as much as Rs 773 bn in taxes, penalties and interest against the backdrop of unprecedented new tax hikes to bridge the record deficit.

GMOA Secretary Dr. Haritha Aluthge told The Island that the disclosure made by the Committee on Public Accounts (COPA) on Nov 28 exposed the overall effect ofthe failure byparliament to meet its obligations pertaining to public finance.

The government should have gone flat out to recover taxes, penalties and interests owed by various entities before new revenue generation measures were proposed, Dr. Aluthge said, demanding that the government to come clean on the issue.Responding to another query, Dr. Aluthge said

that what transpired at COPA meeting chaired bySamagi Jana Balvegaya(SJB) MP Kabir Hashim on Nov 28 exposed how successive governments conveniently allowed the situation to deteriorate. Former Minister Hashim succeeded Prof. Tissa Vitharana in the wake of the re-opening of parliament followingitslast prorogation.

The COPA disclosure was nothing but an indictment on the government, Dr. Aluthge said, urging the Finance Ministry and other relevant institutions to address the issue at hand. Why the entire population should suffer due to utterly corrupt and incompetent lot neglecting their responsibilities?Dr. Aluthge asked.

Referring to the statement issued by the Director Legislative Services on Nov 29 consequent to COPA meeting on the previous day, Dr. Aluthge pointed out that the Inland Revenue Department had been summoned by the parliamentary watchdog committee to examine whether COPA recommendations given on March 24, 2021 were implemented.

The top GMOA official said that he was quite baffled that theburningissue hadn’t been given priority in spite of the financial crisis that caused an unparalleled explosion of public anger.

COPA meeting that had been chaired by MP Hashim were attended by State Ministers Mohan PriyadarshanadeSilva, Lasantha Alagiyawanna, Kader Mastan, (Dr.) Suren Raghavan and Diana Gamage as well as MPs Tissa Attanayake, Ashok Abeysinghe, Dr. Sudarshini Fernandopulle, Major Pradeep Undugoda and Weerasumana Weerasinghe.

Dr. Aluthge said that according to figures released by COPA, the total arrears as at June 30, 2022 amounted to a staggering Rs 773,957,856,618 inunpaidtaxes, penalties and interests. The GMOA official pointed outthatCOPA had acknowledged that out of that amount Rs 201,400,855,198 could be collected as there was no legal impediment whereas the recovery of the remaining Rs 572,557,001,420 was on hold temporarily due to various reasons.

Referring to COPA proceedings, Dr. Aluthge said that the Auditor General had quite clearly asserted that the total amount due to the Inland Revenue was Rs 773,957,856,618 in terms of RAMIS (Revenue Administration Management Information System) and Legacy Systems.How could a bankrupt government be so irresponsible?Dr. Aluthge asked.

The GMOA Secretary also faulted the media for not providing sufficient coverage to the issues dealt by parliamentary watchdog committees. The waste, corruption, irregularities and mismanagement that had been exposed by these watchdog committees over the years proved over and over again the parliament was responsible for the current unprecedented crisis, Dr. Aluthge said.

The shocking disclosure made by the Auditor General that the RAMIS system installed at a staggering cost of over Rs 10 bn to ensure smooth collection of revenue was yet to be fully and properly operational painted a bleak picture, Dr. Aluthge said.

Referring to COPA proceedings again, Dr. Aluthge said that the Auditor General was on record as having said that though deficiencies of RAMIS system had been brought to the notice of COPA on several occasions remedial measures were not taken.

“The parliament owed the public an explanation. The parliament cannot absolve itself of the pathetic and reckless handling of public finance that finally led to Sri Lanka tagged as a bankrupt country,” Dr. Aluthge said.

Dr. Aluthge said that the GMOA sincerely believed the parliament would at least now hear what the Auditor General told COPA of his efforts to get to the bottom of RAMIS installation.

Janakantha Silva, Director Legislative Services and Acting Director Communication in a statement that dealt with COPA meeting chaired by MP Hashim quoted the Auditor General as having said that the Inland Revenue Department declined to release the RAMIS agreement and related payments, the agreement barred the Inland Revenue from releasing the information sought by him. The Auditor General has further alleged that the Inland Revenue Department withheld information pertaining to the RAMIS agreement claiming the release of the agreement violated the Constitution.

How could the Auditor General be deprived of an agreement entered into by the Inland Revenue on behalf of the government? Dr. Aluthge asked.COPA Chairman Hashim has declared that an audit would be conducted on the RAMIS deal if the report sought from the Inland Revenue within a month in respect of the same was not satisfactory.

Dr. Aluthge said that he couldn’t believe that action hadn’t been taken in respect of 4,831 return checks worth Rs 2,488,003,615 (2.4 billion) received by Inland Revenue as at June 30. According to COPA 3,817 of these returned cheques worth Rs. 1,429,356,750 rupees were more than 3 years old. The Inland Revenue has said that the department lacked the authority to take legal action.

Pointing out that COPA Chairman has advised Inland Revenue to inform him of the action in this regard in consultation with the Attorney General , Dr. Aluthge said if the parliament bothered to inquire into what was happening in the revenue collection set up the current crisis could be easily explained.

Dr. Aluthge recalled comprehensive tax proposals submitted by Prof. W.D. Lakshman during President Mahinda Rajapaksa’s second term were never implemented. In fact, the library of the parliament didn’t have a copy of it, Dr. Aluthge alleged, urging the parliament to address the issues at hand without further delay or prepare to face the consequences.



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JSA opposes move to extend retirement ages of superior court judges

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Dr. Rajitha Senaratne

The Judicial Service Association (JSA), which represents the country’s magistrates and district judges, has unanimously adopted a resolution opposing the government’s proposed extension of the retirement age of superior court judges.

The resolution was passed at a special general meeting held at the Kaduwela Magistrate’s Court premises, attended by 65 magistrates and district judges from across the country.

The meeting was convened following the resignation of JSA President Pasan Amarasena, who stepped down in protest over the holding of the meeting.

According to the resolution, all members present voted in favour of opposing the proposed extension of the retirement age of Supreme Court and Court of Appeal judges.

Amarasena resigned after facing criticism for unilaterally expressing support for extending the retirement age of the Chief Justice. Following his resignation, JSA Secretary Suranga Munasinghe issued a statement to members rejecting the allegations contained in Amarasena’s resignation letter.

Meanwhile, former Health Minister Dr. Rajitha Senaratne claimed the government’s attempt to extend the tenure of superior court judges was aimed at securing their support in pursuing what he described as a campaign of political revenge against Opposition members.

Addressing a meeting at the Sri Lanka Freedom Party headquarters on Darley Road, Colombo, Senaratne argued that if the government’s justification was to retain experienced judges and avoid vacancies, similar retirement age extensions should also be granted to other professions, including university academics.

“The judges themselves have now unanimously opposed the government’s move, as reflected in the outcome of the Judicial Service Association’s special general meeting at Kaduwela,” he said.

by Chaminda Silva

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Next two weeks critical as dengue risk soars

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Mosquito larvae density in Sri Lanka’s Western Province has increased significantly, making the next two weeks an extremely high-risk period for dengue transmission, according to Consultant Physician Dr. Ananda Wijewickrama, a member of the Expert Committee on Dengue Management.

Speaking during a television programme, Dr. Wijewickrama warned that based on the current trend of dengue transmission, the situation could become more serious than the country’s 2017 dengue outbreak.

He said hospitals in the Western Province have already exceeded their capacity due to the sharp increase in patient admissions, with some facilities being forced to accommodate two or even three patients in a single hospital bed.

Also speaking during the programme, Prof. Neelika Malavige of the University of Sri Jayewardenepura said early signs of the current outbreak had been visible as far back as December and January.

“We could already see indications of this in December and January. With the current changes, the trend is not encouraging. We usually see an increase in dengue cases during the Southwest Monsoon period from May to July, and again during the Northeast Monsoon from November to January. When such conditions are expected, we need to be prepared in advance. After that, from February to April, we experienced extremely high temperatures, and mosquito breeding tends to slow down during periods of excessive heat,” she said.

Professor Malavige also noted that three dengue vaccines have been approved in various countries and are currently being used in several Asian nations, including Indonesia, the Philippines, Thailand, Vietnam and Malaysia.

“However, there are many factors Sri Lanka would need to consider before introducing a dengue vaccine. It would not have an immediate impact on reducing an epidemic. The vaccine requires two doses, and it takes time for immunity to develop after vaccination. However, for people who have previously been infected with dengue, the vaccine has shown very good effectiveness,” she said.

Sri Lanka has so far reported 66,064 dengue cases this year, while the death toll has risen to 46.

A total of 10,685 cases were reported during the first nine days of July alone, including 1,030 new infections reported yesterday.

Of the total number of cases, 52.7% have been reported from the Western Province. Gampaha District has now overtaken Colombo District as the area recording the highest number of dengue infections.

Meanwhile, amid the heightened risk, special dengue control operations involving members of the armed forces were carried out today in several parts of the country.

by Pradeep Prasanna Samarakoon

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Budget 2027 on Nov. 12

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The second reading of the 2027 Appropriation Bill will be presented in Parliament on November 12, the Ministry of Finance announced.

The Ministry said the Bill will be published in the Government Gazette on September 18 and presented for its first reading in Parliament on October 7.

The draft Appropriation Bill for 2027, which sets out the proposed expenditure allocations for each Ministry, is scheduled to be submitted to the Cabinet for approval on September 14.

According to the Ministry, the second reading debate on the Budget will be held from November 13 to 20, while the Committee Stage debate is scheduled from November 21 to December 14.

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