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Govt. plan to boost revenue with taxes on vehicle imports unrealistic, warns Harsha

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Dr. de Silva

By Saman Indrajith

SJB Colombo District MP Dr. Harsha de Silva told Parliament yesterday that vehicle imports would be affected by unusually high prices. Commencing the Second Reading debate from the Opposition side, Dr. de Silva said that President Anura Kumara Dissanayake had, in his Budget speech, projected a substantial portion of tax revenue from vehicle imports. “What is the feasibility of such expectations, given the current price surge,” the MP queried.

“Who can afford to import vehicles at these rates? I do not believe there are enough affluent individuals in Sri Lanka to sustain vehicle imports at these exorbitant prices.”

Providing examples of the dramatic price increase, Dr. de Silva pointed out that a Toyota Raize now cost Rs. 12.2 mn, a Toyota Yaris Rs. 18.5 mn, and a Toyota Prius a staggering Rs. 28.9 mn.

“Someone mentioned that a Toyota Vitz could be available at Rs. 1.4 mn.”

Dr. de Silva said that the government aimed to increase tax revenue by 1.6% of GDP with a significant portion expected from vehicle imports. However, he warned that achieving that target was unrealistic under current circumstances. The government must reassess its reliance on this sector for increasing tax revenue,” he said.



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Payment of Compensation to the people who have lost their cultivable lands in implementing the Uma Oya Multipurpose Development Project

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Approval has been granted at the Cabinet meeting held on 27-06-2012 to provide cultivable agricultural lands from the lower Uma Oya valley to 276 farming families in Hali-Ela, Walimada, and Uva Paranagama Divisional Secretariat Divisions who have lost their cultivable lands due to the acquisition of lands for the
Uma Oya Multipurpose Development Project.

However, the aforementioned proposal could not be implemented due to the encroachment of a large portion of the identified lands by unauthorized persons, heavy forest cover, the threats posed by wild elephants, remoteness from their original settlements, and difficulties in adapting to other environmental conditions and social anomalies.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the Minister of Agriculture, Livestock, Land, and Irrigation to pay an estimated compensation of Rs. 12 lakhs for each of these 276 farming families, based on the
recommendations submitted by the Cabinet Sub-Committee appointed to provide solutions for the issues arising in the implementation of the Uma Oya Multipurpose Development Project.

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Draft Bill of the Chartered Institute of Media Professionals of Sri Lanka to be Gazzated

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Policy approval was granted at the Cabinet meeting held on 07.04.2025 to prepare a draft bill to establish the Chartered Institute of Media Professionals of Sri Lanka in order to accomplish the requirement of a training institution to carry out studies in order to create chartered media professionals and mould intelligent media personalities with skills in order to enhance the quality and standard of the media society.

Clearance of the Attorney General has been received for the final draft prepared by the Legal Draftsman for the purpose.

Accordingly, the Cabinet of Ministers granted approval to the resolution furnished by the Minister of Health and Mass Media to publish the draft bill of Chartered Institute of Media Professionals of Sri Lanka in the Government Gazette Notification and thereafter submit the same for the concurrence of the House.

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Telecommunication Levy Act No. 21 of 2011 to be amended

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The Telecommunication Levy Act No. 21 of 2011 has enabled provisions to impose telecommunication levy. The budget 2026 has proposed to introduce amendments for the act including changes imposed from time to time regarding the telecommunication levy.

Accordingly, the Legal Draftsman has formulated a draft bill for
amending the Telecommunication Levy Act No. 21 of 2011 including provisions to extend applicable to envisage all the tax amounts applicable from the year 2015 along with the telecommunication levy existing at present, applicable of taxes on unrecovered revenue (bad debts) and to extend the provisions of that act to cater the telecommunication suppliers.

The Cabinet of Ministers approved the resolution furnished by the  President in his capacity as the Minister of Finance, Planning and Economic Development to publish the said draft bill in the Government Gazette Notification and subsequently to submit the same for the concurrence of the House.

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