Editorial
Death and taxes: inevitabilities of life
Benjamin Franklin, a founding father of the United States of America and a drafter and signer of its Declaration of Independence wrote centuries ago that “our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.” Though the inevitability of death and taxes has now assumed the garb of a hoary cliché, its validity remains unchallenged to this day. The Buddha said anicca vata sancara (all things are impermanent) many millennia before Franklin and it can be presumed that taxes, as we now know in the modern day, did not exist in the Buddha’s time.
With the New Year. and together with it the higher VAT (value added tax) kicking in, we Lankans battling an ever soaring cost of living and government’s demand, at the behest of the International Monetary Fund (IMF), for more revenue are now obsessed with taxes, both direct and indirect. According to Wikipedia Indirect taxes in the forms of excise duties, VAT and tariffs are the key contributors to the government tax revenue with 74% while direct taxes including income tax, Pay-as-you-earn tax and Economic Service Charge contribute only around nine percent.
Thus income taxpayers, including professionals, grumbling about the prevailing high rates of tax need to realize that the indirect tax burden falls on the entire population including the impoverished segments. We are in this context reminded of an anecdote published in the old Illustrated Weekly of India several decades ago of a market vendor woman telling a customer grumbling about income tax. “if I had your income, I’d be glad to pay your taxes.”
But income taxpayers do have a real grouse that the inland revenue authorities applying the tax squeeze on those of them on file, have over a very long period of time been hopelessly inept at widening the tax net and ensuring that those liable to income tax “render unto Caesar, the things that are Caesar’s.” Both illegal tax evasion and avoidance which is legitimate has been rampant for as long as the Income Tax Department of yesteryear and its successor, the Inland Revenue Department, have been in existence.
But despite the grand sounding titles bestowed upon its hierarchy, as elsewhere in the public service, delivery of revenue into state coffers or the closing of loopholes in the law enabling avoidance have been nowhere near what it should be. An official once titled Commissioner of Income Tax (or Inland Revenue) has now become Commissioner General, the Deputy Commissioners of the past are now Commissioners and so on and so forth.
At a news discussion hosted last week by the President’s Media Division (PMD), Central Bank Governor Nandalal Weerasinghe encouraged people to bring tax evasion to the notice of the authorities to help reduce their own taxes in the future. In effect, he was advocating “whistle blowing” as it is commonly called or ‘ratting’ as the victims may choose to label it.
The Inland Revenue Department, we are sure, must be receiving numerous petitions on tax evasion. As in the customs, it is very likely that informants are rewarded if information provided leads to successful assessment and collection. There is no doubt that whistle blowing and petitions are mostly triggered by reasons of personal enmity rather than any interest in the public weal. Alternatively, the informants are looking at the rewards they can get for themselves.
But the public is well aware that over a very long period of time, the political and bureaucratic establishments have scratched each other’s backs for personal advantage for themselves. One very good example was in the seventies when Mr. Ronnie de Mel was finance minister in the J.R. Jayewardene government, emoluments paid by the government was relieved of income tax. Member of Parliament too received the same benefit.
The justification for this measure was that public and private sector salaries were not on par and it was necessary to incentivise senior public service managers to remain in service and not take private sector jobs for better pay. This argument was riddled with holes. There were public service employees like planters in the various company owned estates who enjoyed very good terms which remained after the takeover.
But they too got the break of no tax on their pay and perks. Also, not all private sector employers pay their employees well. While many of the big companies do, most of the small one don’t.
It was the same JRJ government that did away with estate duty which the present government is planning to reintroduce from 2025 as an inheritance tax. Some employers, including in the state sector, pick up (or picked up) the tax tabs of their employees. There are numerous weaknesses in the existing tax system that requires immediate attention but no serious action in this regard is visible.
Time was when dividend and interest income was taxed at source. This is a convenient collection method but with the serious weakness that many retired persons, living on interest income from fixed deposits, got taxed although their incomes were below taxable thresholds. As everybody knows, getting money back from the government is like getting water out of a stone.
It was revealed a few days ago that the stupid proposal that all Lankans over the age of 18-years must have a taxpayer information number (TIN) or risk penalties running up to Rs. 50,000 is not being implemented. What State Finance Minister Ranjith Siyambalapitiya said was the penalty was not going to be slapped. But he did not say the proposed TIN registration for all Lankans over 18, probably an advance of the digitisation ambition, was being abandoned.
Most Lankans over 18-years old have National Identity Cards. Siyambalapitiya stressed that having a TIN did not mean those below the Rs. 1.2 million taxable threshold would have to pay taxes. They remain exempt. Why then was the empty threat made?
Editorial
Conspiracies galore!
Saturday 18th July, 2026
US President Donald Trump has accused China of interfering in the 2020 US presidential election and alleged “shocking vulnerabilities” in American voting systems. Speaking from the White House on Thursday, he repeated unsubstantiated claims about voter fraud and foreign meddling in the 2020 election, which he lost.
Trump claimed he had declassified hundreds of intelligence files which supported his claim that Beijing tried to sway the election in his rival, Joe Biden’s favour. However, the US intelligence agencies have concluded that China did not interfere in the 2020 election. One may recall that there were allegations of Russian interference in the 2016 US presidential election, which Trump won. After securing the presidency, Trump insisted that those allegations were false, politically motivated and an attempt to delegitimise his victory.
Trump’s allegation against China has come three months ahead of crucial US midterm elections, where the Republicans are expected to suffer a setback. Trump is doing everything in his power to prevent a situation that will make his position as a lame-duck President even weaker. So, it is only natural that he is concocting conspiracy theories and resorting to hard power projections, such as using military force, and economic coercion to influence other nations, in a bid to shore up the crumbling image of his government. However, it is doubtful whether his tactics will pay off.
Meanwhile, US Vice President JD Vance has accused a section of the Israeli government of trying to sway US public opinion against a peace deal to end the Iran war. He said so in an interview with a podcaster on Wednesday. Defending a deal that the US reached last month to end the war with Iran, Vance said, “I know beyond a shadow of a doubt that there have been people within the Israeli government who are trying to, like, actually shift us away from that policy because they want to continue the military campaign,” according to media reports. Vance’s allegation followed a Time magazine story that a former Trump campaigner had been hired to influence US views of Israel and the Iran war. Vance’s allegation is damning; he has called the Israeli efforts “very discreet, extremely well-funded campaign to try to derail the negotiation and try to derail the deal”.
That Israel does not want the US to enter into a peace deal with Iran is obvious. It wants the US to go on attacking Iran until there is a regime change in Tehran. Israeli Prime Minister Benjamin Netanyahu makes no bones about the fact that he was not well-disposed towards the interim peace deal signed between the US and Iran. The resumption of hostilities must have gladdened his heart as well as those of all other hawks in Washington and Tel Aviv.
There is no way Israel can prevent the US from signing a peace agreement with Iran if President Trump so desires strongly. What has stood in the way of efforts to end the Iran war is Trump’s intransigence. Iran is not without blame, but the US is to be blamed more for the resumption of war. Trump knows he cannot go on attacking Iran indefinitely for economic and strategic reasons. The US weapons stockpiles have to be replenished, and the economic cost of war is escalating. The war has also driven oil prices and the cost of living high in the US, much to the consternation of the US public, the majority of whom are against the ongoing war, which they think Israel manoeuvred the Trump administration into. Trump only made a virtue of necessity when he agreed to a ceasefire, but wanted to end the war on his own terms; he failed because Iran did not give in to US pressure.
As for the aforesaid ‘conspiracies’ Trump is in a position to order a thorough probe into the alleged Chinese interference in the 2020 US election and get to the bottom of it, and instead of blaming Israel, Vance can ask his boss, Trump, to stop attacking Iran.
Editorial
Overwhelming fire power and stubborn resilience
Friday 17th July, 2026
Israeli Prime Minister Benjamin Netanyahu must be on cloud nine. The US is now doing exactly what he wanted it to do; it is attacking Iran without Israeli involvement. Israeli officials have told the media that they do not expect Israel to become directly involved in the new phase of fighting though the Israel Defence Forces remain on alert should the conflict expand. This can be considered another dream come true for Netanyahu, who said after the first round of US-Israeli airstrikes which killed Iranian Supreme Leader Ayatollah Ali Khamenei that he had been dreaming of attacking Iran for 40 years.
What is unfolding in West Asia is an asymmetric conflict where the US firepower is far superior to that of Iran, which is resisting Trump’s “Epic Fury”. Tehran’s resilience is remarkable. The US cannot go on carrying out airstrikes indefinitely. Only a ground war will determine a clear winner.
Trump has threatened a ground assault in Iran, but he has the war powers resolution passed by the Congress recently to contend with. A ground operation won’t be a walk in the park. Deploying ground troops is a high-risk gamble that did not pay off for the US in Vietnam and Afghanistan. A steady flow of body bags from a foreign theatre of war that lacks popular support at home has the potential to unsettle any government.
Weapons stockpiles are not unlimited for any nation however mighty and wealthy it may be. The ongoing conflict has depleted the weapons inventories of both sides to it. However, it can be considered a matter of greater concern to the US than Iran in that Washington has to fire a large number of missiles at multiple targets in Iran as part of its strategy to keep Tehran under pressure. Michael O’Hanlon, who leads the Brookings Institution’s foreign policy research, has been quoted by the media as saying that the US weapons stockpiles are doubtlessly lower than Washington would prefer.
The Center for Strategic and International Studies, a Washington-based think tank, has reportedly said that by the time full-scale fighting between the US and Iran stopped in April, the Pentagon had fired at least half of its THAAD ballistic missile interceptors, nearly half of its Patriot air defence interceptors, and around 30% of its Tomahawk land-attack missiles. This revelation runs counter to President Trump’s boastful claim that the US has a never-ending supply of missiles. Besides, in March, Trump said that his officials had met the heads of US arms manufacturing companies and they had promised to increase production.
Military analysts are of the view that it could take between one to four years for the US to replenish its vital munitions stockpiles and restore them to the pre-Iran war levels, according to an Al Jazeera report. Speculation is rife in international defence circles that if the depletion of the US weapons stockpiles continues at this rate, Washington may find it difficult to face a military conflict elsewhere.
Global oil prices are rising again due to the closure of the Hormuz Strait. A US naval blockade will be of little use. The global economy will be the biggest loser. Oil supply disruptions will take a heavy toll on the US economy as well. The first phase of the Iran war sent the US fuel prices up, and the closure of the Hormuz chokepoint will make the situation far worse. Trump is fighting a war that a vast majority of Americans are opposed to, according to opinion survey results. US farmers have been complaining of production cost escalations due to the knock-on economic effects of the West Asia conflict, according to media reports. US midterm elections are due in a few months and the Republicans are not doing well on the political front.
The White House will have to justify the colossal amounts of funds being spent on the current war. The financial cost of the conflict is still being calculated, but according to some estimates the direct military cost ranges from about USD 40 billion to more than USD 100 billion, with equipment losses, base repairs and weapons replenishment being taken into account. The cost continues to escalate. These politico-economic factors will also have a bearing on Trump’s military campaign.
Editorial
The strange case of Kanjipani Imran
Thursday 16th July, 2026
Occasions are not rare when absurd twists and turns in Sri Lanka’s legal system remind us of Mr. Bumble, the famous Dickensian character, who declared, “The law is an ass”. The police arrest criminals, after months of meticulous planning, risking their life and limb, but the latter obtain bail, go into hiding, either here or overseas, and continue to run their illegal operations. The police have to launch fresh operations to arrest the criminals on the run.
The police have sought information about Mohommad Najim Mohommad Imran alias Kanjipani Imran, who is wanted under an INTERPOL Red Notice. He is running his criminal operations from overseas, according to a report published in this newspaper yesterday. It defies comprehension why he was released on bail in 2021 though it was patently clear that he would flee the country.
Quoting the police, our news item has said intelligence reports point to links between Imran and international terrorist organisations as well as major mafia syndicates, which enable him to use transnational networks and technology to manage drug trafficking and other criminal operations.
Much is being spoken these days about the need to strengthen public confidence in the judiciary. There is no gainsaying that everything possible must be done to preserve the integrity and dignity of the judiciary. Worryingly, some issues crop up, making one wonder whether a section of the law enforcement authorities and some members of the legal fraternity bend the law to safeguard the interests of wealthy underworld figures at the expense of the judicial process and public security.
The police and the state prosecutor take great pains to prevent some suspects, especially the political opponents of governments in power, from obtaining bail. They invoke all laws and come out with various arguments to have such suspects held on remand for extended periods. Instances abound where their investigations get underway in earnest only after suspects are arrested and remanded for weeks, if not months, while ruling party politicians conduct social media trials, as it were, and declare the suspects guilty, with no heed for the presumption of innocence or the fact that public speculation is prohibited when cases are sub judice.
When Imran was arrested in Dubai and extradited in 2019, it was widely thought that he would have his work cut out to secure bail because Sri Lanka police and their UAE counterparts had worked tirelessly for months to arrest him and Makandure Madush, known as Sri Lanka’s Napoleon of Crime, and bring them here. Madush was shot dead while in custody, and the then government claimed that he had been caught in the crossfire between police and an underworld gang while being taken to a place where a haul of narcotics was believed to have been buried. It is doubtful whether the discerning public bought into that claim.
The news of Imran being released on bail raised many an eyebrow. We said in an editorial comment dated 02 January 2023 that having secured bail he would flee the country and carry out his illegal operation from overseas as other criminals did.
However, Imran is not the only criminal to have jumped bail and fled the country. Janith Madushanka de Silva alias Podi Lasi, a dangerous underworld character, fled to India after being released on bail in 2024. He even claimed that his life was in danger and asked for police protection. It was obvious that he would flee the country, and he did so soon afterwards. One may recall that in 2020, while being detained at the Boossa high-security prison, he and two other criminals, known as Kosgoda Tharaka and Pitigala Keuma, threatened to kill the then President Gotabaya Rajapaksa, Defence Secretary General Kamal Gunaratne and several senior prison officers. Podi Lasi bragged that their private armies were capable of striking anywhere at will. He was arrested in India and brought back in 2026. Thus, criminals are caught, released and caught again. Now, the police are trying to arrest Imran.
Only a thorough probe into the circumstances that led to the release of Imran on bail will reveal how he managed to manipulate the legal process and flee the country.
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