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Controversial Social Security Contribution Bill put off due to resistance from Opposition

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By Saman Indrajith

The government yesterday decided to put off the Social Security Contribution Bill when the JVP and the SJB, in Parliament opposed it vehemently.

The Social Security Contribution Levy Bill had been listed for the second reading debate, and Parliament sources said that the party leaders had agreed to pass the Bill with several other regulations, without debate to save time for another debate, listed for the day, on current nutritional problems of children and women.

When the Leader of the House and Education Minister got up to present the Bill for the approval of the House, JVP leader, Anura Kumara Dissanayake, said that the Bill would place an additional tax burden on people. “The government keeps on levying taxes on people. The government’s excuse is that it does not have money. There is a financial crisis. Then it should first take action against former Central Bank Governor and ex-Finance Minister Basil Rajapaks for bankrupting the country. What action are you going to take against them?” Dissanayake queried.

The JVP leader said that the Bill envisaged introducing a social security tax. “The government keeps shifting the burden on to people. It increased the VAT from 8 percent to 12 percent and then most recently to 15 percent. Prices of all essential commodities including medicines, have gone up. There is a new tax called social security tax of 2.5 percent on the turnover. This turnover tax is on importation, production, selling and services. This tax is applicable to all fields of the economy. One who owns an industry, covering all these aspects, will have to pay 2.5 percent in importing, another 2.5 percent for 85 percent of the production and this tax will be levied again in distribution and selling. Thus, this tax is like a compound tax. With 15 percent VAT, this new addition will result in an increase of tax cost to around 20 percent. People are in great difficulty owing to the existing taxes. This is very unfair and unjust. No action has been taken against those who caused this crisis.”

“We are against this Bill,” Dissanayake said.

SJB MP and Chairman of the Public Finance Committee Dr. Harsha de Silva also opposed the the Bill.

He said it was not proper to enact a Bill without presenting a review of it.

He said that the Public Finance Committee did not approve any Bill without reviewing it. “However, we had to approve the Social Security Contribution Bill as we were informed that it was urgent.”

MP de Silva said that the Bill required some amendments and it could not be approved without perusal.

He said that the amendments to the Bill had been proposed without the approval of the committee.

“In other countries, they have either VAT or Turnover tax. You cannot have both. An accounting firm predicted that this 2.5 percent could go up to seven percent in the process. I agree with MP Dissanayake. This is an unfair tax.”

Dr. De Silva said the property sales business had been taken out of the list of enterprises to be taxed by the social security tax. “That is to help the rich. You are taxing the poor while giving exemptions to the rich. This is an unjust act,” he said.

Responding to the opposition MPs, Leader of the House Minister Susil Premajayantha proposed the postponement of the vote on the Social Security Contribution Bill to Thursday.



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Complaint to HRCSL alleges woman framed in heroin case

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A complaint was lodged with the Human Rights Commission of Sri Lanka (HRCSL) against a Sub-Inspector and a woman police constable attached to the Badowita Police Post of the Mount Lavinia Police Station, alleging that they had falsely implicated a woman in a heroin case.

The complaint was lodged yesterday by family members of the woman through a lawyer, alleging that she was taken into custody by the two police officers on Wednesday and subsequently produced before the Magistrate’s Court.

According to the complaint, the woman was placed in police custody and later learned in court that police had informed the Magistrate that she had been arrested with 10 milligrams of heroin. She was subsequently remanded until next Monday and is due to be produced before the High Court in connection with the alleged possession of heroin.

The complainant alleges that the woman had initially been questioned by the Sub-Inspector and the WPC about suspected narcotic dealers operating in the Badowita area. They claim that, after she failed to provide information, she was taken to the Badowita Police Post and subsequently implicated in the drug case.

The complaint further alleges that the Sub-Inspector has previously been accused of introducing narcotics and falsely implicating individuals in drug cases. The complainants have also alleged that the officer had recorded videos of suspects allegedly being tortured and shown the recordings to his girlfriend.

It also refers to alleged audio recordings circulating on social media concerning complaints made against the officer to the Inspector General of Police and Police Headquarters.

The complainant has further alleged that the officer was involved in a road traffic accident several weeks ago, but that no proper investigation has been conducted.

They also cited a previous allegation that the officer had assaulted a suspect at the police station and subjected him to electric shocks, following which the suspect allegedly collapsed and was admitted to the Kalubowila Hospital.

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Judge cautions DSG against pressuring prosecution witnesses in immunoglobulin fraud trial

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President of the Colombo High Court Permanent Trial-at-Bar, Priyantha Liyanage, while hearing a case involving the alleged fraudulent supply of substandard Human Immunoglobulin to the Ministry of Health and the alleged defrauding of more than Rs. 1.4 billion in public funds, on Wednesday, cautioned Deputy Solicitor General Lakmini Girihagama against preventing prosecution witnesses from answering questions or exerting pressure on them.

“You have brought these witnesses as prosecution witnesses, but once they are before the Court, you cannot stop them from answering or exert pressure on them. The Court is observing your conduct,” the judge said.

The remarks came during cross-examination of a prosecution witness by defence counsel in the case being heard before the Colombo Permanent High Court Trial-at-Bar.

The accused include Sudath Janaka Fernando, owner of Isolez Biotech Pharma, who is facing charges over the alleged supply of substandard and fraudulently manufactured medicines to the Ministry of Health and the alleged defrauding of more than Rs. 1.4 billion in public funds.

During proceedings, defence counsel questioned a pharmacist from Karapitiya Hospital about notifications issued through the Swastha system concerning the withholding of certain pharmaceutical products, including Human Immunoglobulin and products associated with Live Health Biopharma.

The witness repeatedly said he could not remember whether the matters had been raised when the Criminal Investigation Department recorded his statement.

The defence argued that the absence of such information from the witness’s CID statement pointed to deficiencies in the investigation.

The prosecution objected to some of the questions, prompting the judge to clarify that the defence was entitled to examine whether the investigation had been properly conducted.

An Additional Secretary of the Cabinet Office subsequently testified on procedures governing Cabinet memoranda, including their preparation, submission, consideration and approval.

The trial continues.

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Namal blows whistle on 120,000 MT of coal that allegedly went missing after being shipped here

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SLPP National Organiser and MP Namal Rajapaksa yesterday alleged that 120,000 metric tonnes of coal worth approximately Rs. 4.62 billion had gone missing from 19 coal shipments imported into the country.

Addressing Parliament, Rajapaksa maintained that the quantity of missing coal was equivalent to nearly two shiploads and questioned who was responsible for the alleged discrepancy.

“We brought in 19 shipments of coal. But of those 19 ships that arrived, 120,000 metric tonnes of coal have gone missing,” he said, placing the value of the missing coal at Rs. 4.62 billion.

Rajapaksa made the allegation while criticising the government for the procurement of what he described as substandard coal, and challenged its claims of having taken action against corruption.

“You started out by saying you were going to catch thieves. That is now your great slogan,” he told the Government.

Referring to President Anura Kumara Dissanayake’s remark that they had not “eaten and tasted” the coal before purchasing it, Rajapaksa used the phrase metaphorically to allege that coal had been misappropriated both before and after procurement. He said the reported shortage raised questions over the fate of the equivalent of two shiploads of coal.

“Now, who swallowed these two coal ships?” Rajapaksa asked, urging the Government to explain the alleged disappearance.

He also criticised the government’s claim that billions of rupees were available at the Ministry of Finance, saying such financial resources were not reflected in development activity at village level.

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