News
VAT on fuel already subjected to several taxes unfair – SJB trade union wing
How come royalty on foreign players replaced with additional Rs 50 charge on a litre of fuel?
by Shamindra Ferdinando
Convenor of the Samagi Joint Trade Union Alliance Ananda Palitha yesterday (12) said that the Wickremesinghe-Rajapaksa government was planning to impose VAT on fuel already subjected to several taxes amounting to Rs 75, an extremely high Rs 45 ‘administrative’ charge and Rs 50 per litre collected to settle USD3 bn loan that the CPC has taken from the People’s Bank and the Bank of Ceylon.
The former CPC employee found fault with the Opposition for failing to vigorously take up the issue during the debate on VAT.
Of the 225 MPs, 92 voted for the VAT (Amendment) Bill and the Finance Bill while 41 voted against at its Third Reading.
According to him, the absence of 92 members at the time of Monday’s vote against the backdrop of ending of session on the previous day for want of quorum exposed the deterioration of parliamentary standards.
Pointing out that fuel hadn’t been previously subjected to VAT, the trade unionist said that in terms of the newly enacted law 18 % VAT was to be imposed on already heavily taxed fuel.
Asked to explain, Ananda Palitha said that Rs. 75 tax imposed on a litre of fuel (both diesel and petrol) consisted of Port and Airport Development Levy, Customs duty, Excise duty and Social Security Tax. In addition, the government and other players added a Rs 45 ‘administrative’ charge for every litre of fuel, Palitha said, adding that this administrative charge though necessary could be limited to half of the amount now charged.
Petrol 92 Octane is priced at Rs 346 per litre, Petrol 95 Octane Euro 4 at Rs 426, auto diesel Rs 329 and super diesel Rs 434.
However, the biggest issue is the addition of Rs 50 as a special charge with effect from June 1, 2023 after doing away with previous decision to levy 1% tax on monthly sales of new entrants to the domestic fuel market, namely Chinese oil giant Sinopec, US-based R.M. Parks and United Petroleum of Australia.
This was to be utilized to settle USD 3 billion loans taken by the CPC but recently transferred to the Treasury to enable the state enterprise to compete with foreign players, Palitha said. But, following representations made by Sinopec, the government abolished 1% tax on their sales and added a new Rs 50 charge on all sales of diesel or petrol, Palitha said, urging the Opposition to examine the issue at hand without further delay.
According to Palitha, Rs 50 charge has been accommodated within Customs duty and consumers brazenly fleeced in a way that was never practiced here.
Palitha said that 18% VAT on fuel would trigger a severe crisis which the government was certainly not equipped to handle.
The former UNP trade unionist alleged that the relevant Sectoral Oversight Committee and parliamentary watchdogs hadn’t looked into this matter at all.
According to him, massive fraud was being perpetrated under the very noses of Parliament that is supposed to be responsible for public finance at all levels.
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Former President Mahinda Rajapaksa has arrived at the Bribery Commission
Former President Mahinda Rajapaksa has arrived to appear before the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) this morning (12) to provide a statement regarding the alleged SriLankan Airlines Airbus deal.
News
Death of infant at Trinco District General Hospital: Suspended docs were at private hospital performing operation: Govt.
GMOA denies allegation, calls for independent probe by a panel of experts
The Health Ministry is considering whether criminal liability should be apportioned to two doctors, suspended over the death of an infant at the Trincomalee District General Hospital during a GMOA strike last month, official sources said.
Health Minister Dr. Nalinda Jayatissa said further investigations were underway to determine whether the doctors involved had committed any criminal offence in connection with the incident.
GMOA President Dr. Prabath Sugathadasa told The Island that his association had asked the Health MInistry to conduct an impartial investigation. Emphasising the need to include experts in the inquiry team, Dr. Sugathadasa said that the death at the Trincomalee hospital had not happened due to the doctors’ strike.
The GMOA always maintained emergency services during trade union action therefore the Trincomalee death couldn’t be blamed on the Association, he said.
The infant died on 09 April while members of the Government Medical Officers’ Association (GMOA) were on strike.
Following a preliminary investigation, the Ministry of Health suspended the services of the hospital’s obstetrics and gynaecology specialist and a senior medical officer.
Health Ministry sources said the suspension order had been issued last Friday by the Health Ministry Secretary after investigators uncovered what were described as serious lapses and negligence linked to the death of the newborn during childbirth.
According to investigators, a newborn in distress had been reported from the maternity ward at around 8.45 a.m. on 09 April. Although a resident midwife had alerted the relevant medical personnel, proper medical attention had allegedly not been provided.
The inquiry found that the mother’s suffering had been prolonged and complications had been allowed to develop without a timely intervention. Investigators also noted that adequate care had not been provided even after the patient had been admitted to the ward.
Preliminary findings further revealed that the doctor concerned had failed to participate in the delivery procedure, thereby losing a critical opportunity to prevent complications.
The investigation also found that despite the mother having fever and chills, necessary medical intervention had allegedly not been carried out.
Health Ministry sources said the inquiry had uncovered several irregularities in the discharge of duties, some of which had reportedly been highlighted previously in an official communication issued by the Ministry Secretary.
The Ministry confirmed that disciplinary action had been initiated against the doctors following the findings of the preliminary investigation.
Sources identified one of the suspended doctors as a specialist attached to the Trincomalee District General Hospital who also serves as the President of the GMOA branch at the hospital.
According to Health Ministry the two doctors, under investigation, had been attending to a caesarian operation at a private hospital, in Trincomalee, though they falsely claimed they were on strike.
News
Moves to strengthen environmental law after 24 years
The government yesterday (11) unveiled sweeping amendments to National Environmental Act No. 47 of 1980. It had been last amended in 2002. Authorities described the latest amendments as one of the country’s most significant environmental legal reforms aimed at protecting ecosystems and ensuring sustainable development.
The proposed amendments were announced during a media briefing held at the Department of Government Information under the patronage of Dr. Dammika Patabendi and Deputy Environment Minister Anton Jayakody.
Also present were Secretary to the Ministry of Environment K.R. Uduwawala, Environment Ministry Advisor Dr. Ravindra Kariyawasam, and Director General of the Central Environmental Authority Kapila Rajapaksha.
Speaking at the briefing, Minister Patabendi said the amendments were designed to breathe new life into environmental governance while aligning with the government’s policy vision of “A Sustainable Biosphere – A Green Life.”
“The environmental challenges confronting Sri Lanka today are far more complex than they were when this law was introduced in 1980,” Minister Patabendi said. “Therefore, we need a stronger and more modern legal framework capable of protecting ecosystems, ensuring environmental justice and safeguarding natural resources for future generations.”
The amended Bill, prepared with the participation of environmentalists, academics and other experts, has already been tabled in Parliament and is expected to be debated shortly.
One of the key features of the revised legislation is the legal strengthening of environmental responsibilities vested in local government authorities.
Under the new provisions, the Central Environmental Authority will have enhanced powers to take legal action against local authorities that fail to comply with environmental regulations and directives.
The legislation also empowers magistrates to impose substantial fines on institutions that ignore court orders aimed at rectifying environmental violations.
Minister Patabendi stressed that environmental protection could no longer remain secondary to economic development.
“Sustainable development must be based on scientific principles,” he said. “Development that destroys ecosystems is not development. Environmental conservation and economic progress must go hand in hand.”
The amendments further tighten controls over industries operating under Environmental Protection Licences (EPLs).
Authorities said industries that violate EPL conditions or fail to prevent serious industrial hazards could face suspension or cancellation of licences. The law also introduces provisions enabling temporary closure orders against industries operating in violation of environmental standards.
A major addition to the revised Act is the introduction of dedicated legal provisions governing hazardous waste and chemical management.
Under the new framework, the Environment Minister will have powers to enforce stricter regulations under the supervision of technical expert committees.
The Bill also criminalises the submission of false information in Environmental Impact Assessments (EIA/IEE) and unauthorised alterations to approved development projects.
In another significant move, Strategic Environmental Assessments (SEA) will become mandatory in state policymaking, a measure authorities say will place scientific analysis at the centre of national development planning.
Minister Patabendi described the reforms as essential for ensuring long-term environmental security in the face of climate change and ecological degradation.
“We are introducing laws not only for the present generation but for the generations yet to come,” he said. “Protecting wetlands, forests, water resources and biodiversity is now an urgent national responsibility.”
The amended legislation also introduces the globally recognised concept of Extended Producer Responsibility (EPR), which places responsibility on manufacturers for managing the full life cycle of their products, including post-consumer waste.
Environmentalists have long argued that Sri Lanka requires stronger legal mechanisms to address mounting waste management challenges, especially plastic pollution and hazardous waste disposal.
The revised Act additionally introduces a specialised legal framework for wetland conservation, reflecting growing concerns over the rapid degradation of sensitive ecosystems across the island.
Sri Lanka, recognised as one of the world’s biodiversity hotspots, possesses rich ecosystems ranging from tropical rainforests and mangroves to wetlands and dry-zone forests.
Environmental experts say the proposed reforms could significantly strengthen conservation efforts if effectively implemented.
Minister Patabendi said the government hoped the new legal framework would help secure a greener and more sustainable future for the country.
“Our responsibility is to leave behind a living environment that future generations can inherit with pride,” he said.
By Ifham Nizam
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