By Saman Indrajith
The government is all mouth no trousers when it comes to controlling the prices of essential food items, says the JVP.
JVP Propaganda Secretary MP Vijitha Herath told the media at the party headquarters in Pelawatte yesterday said that traders would not bring down prices of goods just because the government ministers give voice cuts to TV channels, calling for price reductions. “They go to economic centres and markets and stand near vegetable stalls and give voice cuts to TV vowing that prices would be brought down. But the traders will not reduce the prices. The ministers also vow that they will arrest traders who sell above the stipulated prices but no such arrests have been made so far. This government is only big talk, but no action. The price of a kilo of rice is now at Rs 140 that is very much above the stipulated price. The government keeps issuing gazettes announcing price controls but no trader gives any consideration to those gazettes.”
He said that the process of economic collapse started prior to the advent of COVID-19 pandemic. “The government tries to take cover behind the pandemic, for its failure to manage the economy that is another indication of its failure. The collapse of the economy started long before the COVID-19. For example, the agriculture sector output dropped by 5.6 percent in the first quarter of 2020. The drop of the industrial sector output was 7.8 percent and the service sector contracted by 1.6 percent during the same time period. The country went to lockdowns after March 19. So, it shows that the first quarter of this year did not have the impact of the pandemic.
“Prices of essential commodities have reached unprecedented heights under this government within one year. The government has failed to control the prices and manage the economy. Those who came to parliament in bicycles demanding the then government to bring down fuel prices are now ruling the country but they did not bring down the prices at least by five cents”.
“I have the official price lists issued by the Central Bank on Nov 20, 2019 and Dec 23, 2020. In Nov 2019 price of a kilo of samba rice was at Rs 95, now it’s between Rs 132 and 140. This government issued at least five gazettes on rice prices alone for the past one year, but none has had any effect. Big onion price was Rs 147 a kilo now it’s Rs 160. Price of dry chillies was Rs 480 a kilo then now it’s Rs 550. A coconut was then Rs 58 now it’s higher than Rs 85. Lentil that the President promised in his address to the nation at Rs 65 a kilo was Rs 110 in Nov, 2019 and now it’s Rs 180. In that address to the nation there were promises to give canned fish at Rs 100 and big onion at Rs 150. It’s known now there are no such items for such prices. Finally the address to the nation became a big joke. Price of sprats a kilo was at Rs 600 now it’s Rs 850. Price of coconut oil has increased from Rs 320 to 480. Sugar price increased from Rs 100 to 135. These are the Central Bank figures that give an idea of the plight of the people after one year under this government. I do not bring the prices of vegetables to this but it’s a known fact that their prices too have increased to unknown heights. For the first time in history a gazette was issued on Sept 25, this year to control the prices of coconut. Nowhere one can find coconuts for that price now. The government has proven that it has lost control of prices in the market. It has failed miserably and people suffer as a consequence.”
COPA questions lion’s share of fines going to Customs
Irregularities, lapses, corruption erode public finance
By Shamindra Ferdinando
The Committee on Public Accounts (COPA) has summoned the Inland Revenue Department tomorrow (23) for an inquiry regarding the inordinate delay in collecting taxes amounting to billions of rupees and extraordinary payments made to the officers of the Customs Department out of fines imposed on both public and private sector enterprises.
Besides, a COPA sub-committee is inquiring into revenue losses suffered over the years as a result of releasing vehicles imported for special purposes as dual-purpose vehicles.
SLPP MP Prof. Tissa Vitharana heads the all-party watchdog committee.
Secretary General of Parliament Dhammika Dasanayake in a statement issued on April 19 through the Communication Department of the Parliament said that Committee on Public Enterprises (COPE) and COPA summoned four enterprises. COPE called the Sri Lanka Football Federation and the National Film Corporation on April 22 and 23, respectively. The COPA summoned the Wildlife Conservation Department and the Inland Revenue on April 21 and April 23, respectively, Dasanayake said.
COPA has fixed the meeting in the wake of disclosure of major shortcomings in the overall revenue collection process. Following COPA meeting Inland Revenue Chief H.M.C. Bandara on March 10, the watchdog committee called for accelerated measures to recover dues. The COPA pointed out that out of Rs 107 bn due to the government, only Rs 224 mn had been recovered so far, immediate measures were required to collect taxes and fines.
At the same meeting, the COPA, having questioned the correctness of a list containing tax defaulters furnished by the Inland Revenue Department, emphasized the pivotal importance of rectifying the shortcomings. The COPA also raised the practicability in recovering taxes in terms of the data provided by ‘Legacy’ and ‘RAMIS’ computer systems.
The Inland Revenue Commissioner General lamented before COPA how inordinate delay in legal proceedings thwarted their efforts to recover taxes. The COPA assured that the Justice Ministry and the Finance Ministry would be summoned for a meeting along with the Inland Revenue Department to explore ways and means of overcoming the issue at hand.
At a subsequent COPA meeting held late March, it was revealed that in addition to their failure to recover taxes amounting to Rs 2,670 mn due from casinos, the Inland Revenue received 6,878 dishonored cheques to the tune of Rs 2,451,465,383. COPA members present on this occasion included Dayasiri Jayasekera, Lasantha Alagiyawanna, Dr. Sudarshani Fernandopulle, Tissa Attanayake, Mohamed Muzammil, Niroshan Perera, Dr. Upul Galapatti, Dr. Harini Amarasuriya, Cader Mastan, S. Sritharan and Weerasumana Weerasinha.
That particular meeting was also told that the amount of collectable taxes in terms of the ‘Default Taxes (Special Provisions) Act No 16 of 2010 (certified on Dec 07, 2010) amounted to a staggering Rs 144.5 bn.
COPA and the Consultative Committee on Ports and Shipping had also taken up on March 9 and 24 the highly contentious issue of the Customs officers taking a big share of fines imposed on tax defaulters, both public and private sector. COPA pointed out that the Customs took advantage of the provision that 50 per cent of the fines imposed on defaulters were shared among those involved in a particular detection. COPA has discussed two specific issues in this regard. COPA pointed out that the allocation of 50 per cent of a fine received from the Sri Lanka Ports Authority (SLPA) for defaulting in respect of gantry cranes to Customs officers was a major problem. COPA focused on taking necessary measures in this regard after having discussed the matter with relevant authorities, including the Treasury Secretary S.R. Attygalle.
COPA pointed out how out of Rs 205 mn fine imposed on Lanka Coal Company (Pvt) Limited for defrauding taxes, Rs 102.5 mn (50 per cent of the total amount) had been distributed among Customs officers as rewards and Rs 41 mn for their welfare (20 per cent) thereby leaving the government with only Rs 61.5 mn. COPA has directed Treasury Secretary Attygalle to conduct a fresh inquiry into this and take tangible measures to prevent similar malpractices in the future.
COPA investigations have also revealed massive racket in the registration of ‘dual purpose’ vehicles. It revealed that as a result of corrupt elements since 2013 registering vehicles imported for special purposes as ‘dual purpose’ vehicles the Treasury lost taxes amounting to Rs 220 mn.
In addition to that the Treasury had been also deprived of taxes amounting to Rs 1.300 mn by not imposing Rs 3 mn each on 443 special vans brought to the country during 2010-2019 period.
COPA also stated that the Customs perpetrated another massive fraud by allowing the import of 10 vans and 414 lorries as special purpose vehicles during 2010-2014.
COPA reported the Customs imposing Rs 1.5 mn tax on a super luxury car instead of legitimate Rs 56 mn.
It revealed the loss of revenue to the tune of Rs 6.1 bn during 2013-2016 period due to the Customs adopting wrong procedure in respect of large quantities of palm oil imports by two enterprises. The watchdog committee has instructed the Customs to expedite measures to recover the dues from those companies.
India reiterates commitment to Sri Lanka’s security
India has reiterated her support for Sri Lanka’s fight against terrorism. The assurance was made on the second anniversary of 2019 Easter Sunday attacks. The following is the text of statement issued by the Indian High Commission yesterday: “High Commissioner Gopal Baglay attended the solemn ceremony at St. Anthony’s Church on 21 April 2021 to mark the second anniversary of the dastardly Easter Sunday attacks. He lit a candle in memory of the victims of the attack and prayed for the recovery of those who are still suffering from its aftermath.
“It may be recalled that the High Commissioner had paid homage to the victims at the Church also on 23 May 2020, the first day after the completion of the mandatory 14-day quarantine period, subsequent to his arrival to Sri Lanka on 8 May 2020 on a special flight carrying a gift consignment of essential medical supplies from India. Prime Minister Narendra Modi had also paid his respects at the Church during the solidarity visit to Sri Lanka in June 2019.
“St. Anthony’s Church was one of the multiple targets of the Easter Sunday attacks, which also took away the lives of 10 Indians. These Indian victims fell prey to the perpetrators at Shangri-la, Kingsbury and Cinnamon Grand Hotels.
India and Sri Lanka cooperate closely in all aspects across the security spectrum. India stands firmly with the people and Government of Sri Lanka in the fight against terrorism and also collaborate on curbing various other illegal activities, such as drug trafficking, narcotics, etc. “
Explosive cargo: Ship carrying compound used for enrichment of uranium asked to leave H’tota port
A ship that made an emergency call at the Hambantota International Port on Tuesday night (20) carrying Uranium hexafluoridea–a compound used in the process of enriching uranium, which produces fuel for nuclear reactors and nuclear weapons–has been asked to leave.
Chandula Rambukwella, Senior Manager, Commercial & Marketing, Hambantota International Port, issued the following statement yesterday: “M.V. BBC Naples sailing under the flag of “Antigua & Barbados” entered the port of Hambantota on 20th April at 2100 hrs, while en route from Rotterdam to China. The ship made an emergency call at the port for some urgent repairs. Agents for the vessel in Sri Lanka, Ms. Barwil Meridian Navigation, had not declared to the port authorities that there was dangerous cargo on board, prior to the vessel entering the port.
It was later found that they were carrying a cargo of Uranium Hexafluoride via investigations made by the Sri Lanka Navy and the Port Authority. The vessel was required to leave the port no sooner the facts were verified.
The SLPA, Navy, and Customs officials had approved all the necessary documentation prior to berthing of the vessel, based on the declaration made by the agent. The Navy and Customs were present at all times to ensure that there wasn’t any cargo unloaded onto the Hambantota International Port premises.”
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