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VAT on fuel already subjected to several taxes unfair – SJB trade union wing

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Ananda Palitha

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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Sun directly overhead Kalpitiya, Talawa, Sinharagama, Galkadawala, Nachchaduwa, Padikaramaduwa, Gomarankalla and Verugal about 12.10 noon today (01)

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The sun is going to be directly over the latitudes of  Sri Lanka from 28th of August to 07th of  September due to its apparent southward relative motion.

The nearest places of Sri Lanka over which the sun is overhead today (01) are Kalpitiya, Talawa, Sinharagama, Galkadawala,
Nachchaduwa, Padikaramaduwa, Gomarankalla and Verugal about 12.10 noon.

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SJB asks what Speaker intended to do about allegations against CJ

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… stresses need for action if claims were proved false

Samagi Jana Balawegaya (SJB) MP Dayasiri Jayasekera has sought a clarification from Speaker Dr. Jagath Wickremaratne regarding several allegations against Chief Justice Preethi Padman Surasena, in Parliament, recently.

In a letter dated 31 August, Jayasekera has asked the Speaker whether he received any documentary evidence from MPs in support of the allegations at issue. The SJB MP has also inquired about the steps taken by the Speaker regarding the allegations and whether the issue had been taken up with the relevant agencies authorised to probe the assets of the CJ and members of his family.

MP Jayasekera confirmed that he had raised the issue with the Speaker, following the accusations relating to the high profile X-Press Pearl case, which received significant public attention in the recent past.

The Kurunegala District MP has also asked the Speaker whether the latter contemplated taking action in case the allegations were proved false to ensure that the dignity of the Chief Justice and the judiciary was safeguarded.

Among the issues raised by MP Jayasekera are the acquisition of valuable property in Colombo by the CJ’s son, the circumstances in which he was able to procure the property, as well as accusations regarding the CJ’s birth certificate, marriage certificate and birth certificates of his children.

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Navy Chief attends strategic-level discussions in Delhi

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Navy Chief Vice Admiral Damian Fernando held a series of strategic-level discussions with senior Indian defence and military officials during a three-day official visit to New Delhi. He returned on Sunday (30).

Navy Headquarters said that the two sides discussed ways to further strengthen maritime security cooperation between the two Navies in support of security in the Indian Ocean region. They also exchanged views on expanding training opportunities and capacity-building programmes, as well as other areas of bilateral importance.

During his visit to New Delhi, Vice Admiral Fernando also held official discussions with India’s Chief of Defence Staff, General N.S. Raja Subramani, Defence Secretary Rajesh Kumar Singh and Vice Chief of the Air Staff, Air Marshal Ashutosh Dixit and defence industry representatives. Discussions at these meetings focused on bilateral defence cooperation, joint training programmes, and opportunities to enhance air and maritime cooperation in the Indian Ocean Region.

As part of efforts to further expand cooperation in naval training and professional development, Vice Admiral Fernando also met Vice Admiral Sameer Saxena, Flag Officer Commanding-in-Chief of India’s Southern Naval Command, at its headquarters in Kochi, Kerala. The two sides discussed existing naval training exchange programmes and opportunities for introducing and expanding further training initiatives. The meeting followed the Commander of the Sri Lanka Navy’s visit to INS Dronacharya, the Indian Navy’s training establishment where he previously completed the Long Gunnery and Missile Course.

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