News
Uncollected taxes, penalties and interest now amount to Rs 943 bn
IRD won’t takeover RAMIS for want of qualified personnel
By Shamindra Ferdinando
The Inland Revenue Department (IRD) has told the parliamentary watchdog Committee on Public Accounts (COPA) that it couldn’t fully take over the Revenue Administration Management Information System aka RAMIS for want of sufficient number of qualified personnel.
Top management of the IRD said so when COPA Chairman Lasantha Alagiyawanna (SLPP), during proceedings, asked them whether they could run RAMIS on its own. This is Alagiyawanna’s second stint as COPA Chairman.
According to a press release dated Nov 18 issued by Janakantha Silva, Parliament Director Legislative Services / Director Communication (Acting), the IRD management had declined to operate RAMIS on its own due to the absence of required personnel. The IRD comes under the Finance Ministry.
The shocking claim of being understaffed has been made, just two days after President Ranil Wickremesinghe, in his capacity as the Finance Minister projected a total tax revenue at 4.1 trillion rupees for next year, sharply higher than 2.85 trillion rupees in the current year, with the biggest jump coming from the goods and services tax receipts.
Lawmaker Alagiyawanna, who is also the State transport Minister has called for a comprehensive report on the tax collected under various clarifications, as well as uncollected taxes, penalties and interests, amounting to Rs 943 bn.
The Island yesterday (19) sought an explanation from State Minister Alagiyawanna regarding the failure on the part of successive governments, including the Wickremesinghe-Rajapaksa administration, to streamline revenue collection, particularly against the suspension of the USD 2.9 bn IMF loan package, due to revenue shortfall.
Lawmaker Alagiyawanna acknowledged that the government was struggling with the issue. In spite of spending as much as Rs 17 bn on RAMIS, the system is not fully functional, the COPA Chief said, adding that collection of unpaid taxes remained a daunting task.
According to COPA records, in terms of both RAMIS and Legacy systems, unpaid taxes, penalties and interests as at Dec 31, 2022 amounted to Rs 904 bn. The SLFPer said they hadn’t been able to overcome problems and various issues relating to massive arrears in tax payments though many discussions took place over the years. As at June 30, 2022, the total amount of arrears in taxes, penalties, and interest amounted to Rs. 773 bn.
Responding to another query, the State Minister said that the government was yet to make a permanent appointment for the post of Commissioner General, IRD. The post fell vacant over three months ago. D.U.A. Jayawardhana currently serves as Commissioner General, in an acting capacity.
Auditor General W.P.C. Wickremeratne has complained to COPA that the IRD continuously refused to divulge contractual information as per the terms and conditions of the agreement with the Singaporean company, NCS, a subsidiary of Singapore’s Singtel. Wickremeratne has questioned the rationale in the IRD’s refusal, claiming that the agreement is technically between the two governments.
State Minister Alagiyawanne said that the arrears in uncollected taxes, penalties and interests continued to grow rapidly over the years as successive governments struggled to cope up with the revenue collection system, comprising IRD, Customs and Excise.
Former Minister and ex-Chairman COPE Dew Gunasekera told The Island that the government should immediately take tangible measures to streamline revenue collection. The former Communist Party Chief and former IRD officer emphasized that the government’s goal should be to gradually bring down the total amount of arrears in taxes, penalties and interest. A cohesive action plan is required to address this issue, the ex-lawmaker said, calling for an all-party consensus on this matter as the economy was in dire straits.
News
Judicial vacancies: President keeps country guessing
The NPP government has not taken a final decision regarding filling of the vacancies in the judiciary.
A group of Opposition MPs, led by SJB leader Sajith Premadasa, on 12 June, requested Speaker Dr. Jagath Wickremeratne to take up the issue of judicial vacancies with President Dissanayake. Opposition sources said that there were four vacancies, each in the Court of Appeal and the Supreme Court, and the inordinate delay had adversely affected the judiciary.
Government sources indicated that there was no change in the status quo as regards filling of vacancies. Referring to the government proposal to extend the retirement age of judges, authoritative sources said that no final decision had been taken yet.
SJB lawmaker Dayasiri Jayasekera told The Island that they would raise the issue in Parliament this week.
He said that the deliberate delay in making appointments to superior courts and the move to extend the retirement age couldn’t be taken separately.
The MP noted that the Bar Association of Sri Lanka, the Lawyers’ Collective, the Colombo High Court Lawyers’ Association, Colombo Magistrate’s Court Lawyers’ Association and the Bar Association of Badulla had opposed the government move.
There hadn’t been any public statements in support of the government move, MP Jayasekera said, urging the government to end uncertainty in the judiciary.
by Shamindra Ferdinando
News
Sajith calls on Opposition parties to rally around SJB
SJB leader Sajith Premadasa has invited the UNP and other political parties to join his party. Premadasa, who is also the leader of the Opposition, has emphasised that the UNP and the SJB could reach a consensus on policies but his party wouldn’t, under any circumstances, accept whatever formula to share positions. Premadasa said so, speaking to the media over the weekend, after meeting the Mahanayaka Thera of the Malwatta Chapter of the Siyam Nikaya Most Venerable Thibbatuwawe Sri Siddhartha Sumangala Thera.
A statement issued by the Opposition Leader’s Office quoted MP Premadasa as having extended an invitation to all political parties to give up extremist policies and join the SJB.
The SJB leader alleged that the NPP government feared facing elections and that was the reason for the inordinate delay in holding Provincial Council polls. PC polls were last held in 2012, 2013 and 2014, on a staggered basis. Premadasa said that if PC polls were held his party would definitely win the majority of PCs.Premadasa also urged the government to reduce electricity tariffs and fuel prices.
News
Ex-EC Chief slams govt. over PC polls delay
Former Chairman of the Election Commission, Mahinda Deshapriya, on Saturday, strongly criticised the continued postponement of local government elections, declaring that every day without elections constitutes a violation of both the Constitution and democratic principles.
Speaking during an interview with journalist Bhanuka Rajapaksa, on Hiru TV, on Saturday, Deshapriya described the current administration of local government institutions by unelected officials as fundamentally undemocratic and contrary to the spirit of representative governance.
Deshapriya said local authorities, across the country, are presently being managed by secretaries and bureaucrats rather than elected representatives, depriving citizens of their democratic right to be governed by individuals, chosen through the electoral process.
“If the Constitution recognises and provides for local government institutions, then it is the responsibility of the State to ensure that elections are held and that these bodies are administered by representatives, elected by the people,” he said.
Deshapriya rejected attempts to justify the prolonged delay, arguing that responsibility for the situation rests with the government.
He noted that while various political parties have publicly stated their readiness to face elections, the ruling administration possesses the authority to resolve any issues relating to the electoral system.
The former Election Commission chief pointed out that the government enjoyed a two-thirds majority in Parliament, enabling it to enact any legislative amendments required to facilitate the conduct of elections. Instead, he said, successive committees and review processes had been used to postpone a final decision.
He also referred to efforts by opposition legislators who have moved motions seeking to address concerns relating to the electoral framework and expedite the holding of local government polls.
Deshapriya warned that any attempt to appoint a fresh delimitation committee could further delay the electoral process, making it unlikely that local government elections would be held within the current year.
He also dismissed claims that financial constraints have prevented the conduct of elections. Expressing surprise at such assertions, he questioned how funding shortages could be cited as a reason for postponement while expenditure continues in other sectors.
According to Deshapriya, the existence of laws establishing local government institutions imposes an obligation on the State to ensure that those institutions are populated through democratic means.
“The legal framework exists. If elected representatives are not appointed through elections and institutions continue to function under unelected administrators, that is a failure of the State,” he said.
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