Connect with us

News

Workers must not be taxed to compensate for loss of state revenue due to mismanagement – trade union collective

Published

on

Opposition to the proposed surcharge tax of 25 percent on workers’ social security and welfare funds is growing with a collective of trade unions representing several sectors alleging that workers are not taxed in any decent society to compensate for the loss of government revenue due to financial mismanagement and lack of clear economic policy.

Anton Marcus, Joint Secretary, Free Trade Zones and General Services Employees Union has issued the following statement on behalf of Free Trade Zones and General Services Employees’ Union (FTZ & GSEU), Sri Lanka Nidahas Sevaka Sangamaya (SLNSS), Ceylon Mercantile and Industrial Workers’ Union (CMU), Ceylon Federation of Trade Union (CFTU), Intercompany Employees’ Union (IEU), Ceylon Bank Employees Union (CBEU), Lanka Jathika Estate Workers Union (LJEWU), National Union of Sri Lankan Seafarers (NUSS), Jathika Seva Sangamaya (JSS), Ceylon Estate Staff Union (CESU), United Federation of Labour (UFL), and the Joint Plantation Trade Union Centre (JPTUC): The Government’s decision by way of a gazette notification issued on 07 February 2022 for a bill to be presented in pPrliament to levy a “one-time” Surcharge Tax of 25 per ent on the gross income of over Rs.02 billion during the revenue year 2020 April 01 to 2021 March 31, will include both the “Employees’ Provident Fund” (EPF) and the “Employees’ Trust Fund” (ETF) as provided for under “Division III: Trusts and Unit Trusts” of the Inland Revenue Act, No. 24 of 2017.

This we say is both immoral and unethical as social security and welfare funds of employees and also the poor are never taxed in any decent society to compensate for the loss of revenue for the State due to financial mismanagement and lack of clear economic policy.

It is calculated the EPF alone would be taxed around Rs.62 billion once again on its already taxed income for the revenue year 2020-2021 that concluded almost a year ago. This massive amount of money that could be taxed from the EPF alone, with more tax from the ETF too is money that should be divided among 2.9 million employees who are active contributing members of the EPF and 19.4 million members in all.

We wish to note, the previous government too imposed a one-time tax levy on the EPF in 2016 that was promised as never to be repeated. Sadly, it is coming back again as another “one time only” Surcharge Tax that now becomes a precedent for all governments in the future for “easy revenue”.

EPF is a social security and welfare fund for private and semi-State sector employees with no monthly retirement salary to tide over their last years out of employment. This fund needs to be further strengthened for the private sector and semi-State sector employees with health benefits and other emergency welfare services. It is disgusting therefore to have governments compensating their inability to manage national finances efficiently, squeezing off large chunks of money from employee benefits, instead.

As a collective of trade unions in the National Labour Advisory Council (NLAC), we wish to demand from this government to immediately withdraw all provisions in the proposed bill gazetted on 07 February (2022) in levying any tax by any name, from employee social security and welfare funds, be it the EPF, ETF or any other and request the government to seek more progressive measures in collecting required revenue for the State.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

Sun directly overhead Kokkuvil, Nallur, Kodikamam and Nagar Kovil at about 12.11 noon today (28)

Published

on

By

The sun is going to be directly over the latitudes of Sri Lanka during 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 (28) are Kokkuvil, Nallur, Kodikamam and Nagar Kovil about 12.11 noon.

Continue Reading

News

Eight politicians in drug kingpin probe

Published

on

Police to arrest and question four former ministers, others over links to Basik

By Norman Palihawadane

Police are investigating alleged links between suspected major drug trafficker Shiran Basik and a number of prominent politicians, with eight of them due to be arrested and questioned as investigators widen their probe into his financial dealings and network of associates, police headquarters, according to a senior police officer.

Among those set to face questioning include a sitting MP, four former ministers, and at least one of them is a female. Police are also investigating allegations that Basik provided large sums of money to politicians during election campaigns and extended other financial and material benefits to political figures.

Investigators are also looking into claims that two politicians were provided with facilities to construct houses and hotels, while efforts are under way to establish the extent of political support and assistance allegedly provided to Basik.

The Colombo Central Crime Investigation Bureau (CCIB) is expected to question the politicians based on information reportedly disclosed by Basik during interrogation. Two electoral organisers are also expected to be taken into custody as part of the ongoing investigation, according to police sources.

Meanwhile, statements are being recorded from managers and employees of several businesses allegedly linked to Basik, while investigators continue to examine information and records recovered from his mobile phone.

Basik, 48, was brought back to Sri Lanka on August 14 after being arrested in Dubai and deported. He was taken into custody by officers of the Criminal Investigation Department’s Airport Unit at Bandaranaike International Airport and subsequently handed over to the CCIB for further investigation.

Police initially obtained a 72-hour detention order to question Basik before securing approval to detain him for 90 days.

Basik, a resident of Dehiwala, is facing investigations over alleged large-scale drug trafficking as well as firearms, and unlawful assembly of weapons-related offences. Police are also examining whether he had any involvement in recent prison-related incidents and have said information has emerged linking him to the 2012 Welikada Prison riot.

The investigation has also expanded to Basik’s alleged assets and business interests in Sri Lanka and overseas.

Police have said information uncovered during questioning indicates that Basik had claimed ownership of five hotels along Colombo’s Marine Drive. Investigators have also identified two houses and two mobile phone shops in Boralesgamuwa allegedly linked to him.

A court has ordered a comprehensive examination of bank accounts linked to Basik, with the Financial Intelligence Unit of the Central Bank of Sri Lanka to conduct a review of his financial accounts. A separate investigation into his wealth and properties is being conducted by the Illegal Assets Investigation Division.

Investigators are also examining claims that Basik owns properties, including hotels and vehicles, in several European countries, as well as a high-value vehicle in Dubai. These claims remain subject to further investigation.

Basik had left Sri Lanka for Dubai in 2018, where police said he lived a lavish lifestyle while operating businesses. He was arrested by UAE authorities before being deported to Sri Lanka.

During initial questioning, Basik told investigators that Dubai police had stopped and searched him at a shopping mall and examined his mobile phone. He claimed that footage relating to Iranian missile and drone attacks was found on the device and that he was subsequently questioned over alleged links to Iran.

Police are continuing to examine the circumstances surrounding his arrest and deportation, as well as the information contained in his mobile phone and other evidence gathered during the investigation.

The ongoing probe is being conducted under the supervision of Senior DIG Ranmal Kodituwakku and SSP Kamal Ariyawansa.The allegations against Basik and the politicians named in connection with the investigation have not been established in court, and the investigations remain ongoing.

Continue Reading

News

CJ first SC judge to benefit from 22A, if enacted: BASL

Published

on

The Bar Association of Sri Lanka (BASL) has opposed the proposed “Twenty-Second Amendment to the Constitution”, saying it raises serious concerns over judicial independence and the rights and interests of the public.

In a statement signed by BASL President Rajeev Amarasuriya and Secretary Nalin De Silva, the association said it had challenged the constitutionality of the proposed amendment before the Supreme Court.

The BASL noted that the Chief Justice would be the first Supreme Court judge to benefit from the proposed amendment if it becomes law. It also referred to widespread speculation that the amendment was being expedited to facilitate an extension of the incumbent Chief Justice’s tenure, which is due to end on December 1, 2026.

Full text of the statement:

“The Bar Association of Sri Lanka (BASL) has taken a principled position opposing the Bill titled the “Twenty-Second Amendment to the Constitution” on the basis that it raises serious concerns regarding the independence of the Judiciary and the rights and interests of the people. Accordingly, the BASL has challenged the constitutionality of the proposed amendment before the Supreme Court.

“It is observed that it will be the Honourable Chief Justice who will be the first Judge of the Supreme Court who will benefit from the 22nd Amendment, if this Bill is enacted into Law.

There is widespread belief that this amendment is being rushed to facilitate the extension of the tenure of the Honourable Chief Justice which would otherwise complete on 1st December 2026. In this backdrop, in the recent past, we have witnessed allegations being made in Parliamentary Proceedings as well as on Social Media concerning the Judiciary including the incumbent Chief Justice.

“During this period, the BASL has also been subjected to unfounded attacks on social media and other platforms.

“The Judiciary, like every other institution exercising public power, must remain subject to legitimate scrutiny and accountability. Judgments, judicial conduct and the administration of justice may properly be subjected to fair, informed and responsible criticism. Where credible concerns or allegations arise regarding any member of the Judiciary, including the Chief Justice, they should be examined objectively and addressed through the appropriate constitutional and parliamentary processes which are in place, with due regard to fairness and due process.

“At the same time, everyone must exercise responsibility when making allegations concerning individual judges, lawyers and others. Personal attacks based upon unsubstantiated allegations can undermine public confidence in the administration of justice and affect the independence and integrity of the judicial process and the system of justice

“Judicial independence is not intended to shield any individual from legitimate scrutiny or accountability. It is a safeguard for the people, ensuring that disputes are determined impartially and that individual rights, the Rule of Law and the constitutional order are protected.

“The BASL therefore calls upon all organs of the State, all parties concerned and the media to respect the role of the Judiciary and the system of administration of justice, while ensuring that any genuine concerns are addressed fairly, responsibly and through the procedures established by the Constitution and the law.”

Continue Reading

Trending