President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe appeared to have contradicting views on the increase in the Value Added Tax (VAT), with Sirisena declaring that any economic advisor who suggest a tax increase which will burden the public will be ‘sent home.’
His statement came just days after the Finance Ministry, on the instruction of Prime Minister Ranil Wickremesinghe announced an increase in the VAT from the 11% to 15% which will come into effect from May 2, 2016.
Speaking at an event held in Polonnaruwa this morning, Sirisena said that taxes will not be imposed with the intention of burdening the public, and any economic advisor who suggest such will be immediately sent home.
Meanwhile speaking in Kurunegala over the weekend, former President Mahinda Rajapaksa lamented the increase in the taxes, pointing out that even essential items such as medication, which were exempted from VAT will be imposed with the tax with effect from next month. “It is the people who have to suffer by bearing this burden, which will affect ever sector from goods to telecommunication and even electricity,” Rajapaksa added.
max / April 18, 2016
I bet my last Rupee, this scarecrow Presi of ours will say “I came to know about this only through newspapers” once the Prime Minister imposes VAT from the next month.
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samuel / April 18, 2016
Man please get the facts straight before going to add your thoughts.
Why should you guys attack him – he has to face it today – VAT is a step taken through discussions held within the cabinet – Mr Sirisena was not excluded, but what matters is he would never allow bakapandithayas of previous regime to interfere here. Today, things cant move WITHOUT being subjected to discussions, as it was the case with Alibaba and 40 thieves.
Had they other options on their list, they would not have gone for tax increases – ALL THESE steps being taken to re adjust the economy left behind by most abusive bunch of thugs.
In the same time, not to utter a single word on the stealer.. is beyond all bearing. Why ? Mantra is so established as nothign could reverse.
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max / April 19, 2016
“Stealing”, “Ali baba and 40 thieves”, “MR the hora” etc., etc., belong to by gone era Samuel. Bashing, attacking them is not any more applicable and people are not ready to buy them unlike before Jan 8, 15. Except for some blind lickers of My3-Ranil-Chandrika trico. Most of the politicos who had been labelled by Yahapalakayas as rogues, thieves, corrupts are now in line with the govt. Sajin Vaas, S.B. Vijith Vijemuni etc., are few simple examples. Who is talking anything about Duminda Silva now? Who is talking against the drug menace which has been covered the whole country now? You guys used to tell 1000 stories when MR lean towards China and now not a single fart against RW who does the same! So, just because CT gives you the opportunity, do not over use it with gibberish which smells badly.
Instead of licking yahapalanaya nakedly, you can do a better job. Push them to get the details of local robbers whose names have been mentioned in Panama papers!
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Saibu Jayathilaka / April 19, 2016
This is man – issues in srilanka. In a country every 2nd is pro corrupted than anti.
So you can see the issues becoming as it is the case in Europe.. pigs might fly.
Besides, everything is relative- I believe as a patient .. leader, My3 will manage to succeed it.
Guys, we just see as JVPrs see it – but lanken politics are complex than a metastaized cancer state of a struggling patient.
Since JVPers tick as we do – they are given no even 1 dozen of seats… can t you see the picture in that way ?
This is srilanken politics, not EU politics as the theory = parctice.
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MsThalanabatu / April 19, 2016
Bashing and attacking is not done by the current regime. Not enough actually. They should finally be corrnered by PROVIDING all the allegations. Sooner than later. Then stupid folks will turn their mind sets forever.
Panama papers and other reveals made it very clear that lies cant be cemented for ever, keeping them away from the taxpayers.. all these willbe surfacing sooner than later.
Jaya niyathai
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Saibu Jayathilaka / April 19, 2016
We are not living in an utopic world. So we cant expect things to turn it within shorter period of time specially considerin the resources they have as one another poor country on this earth.
Licking Yahapalaya with 10% is advantageous than going after Meeharaka led Rajakshe brutal politics. What is bieng not achieved, by the current DUo; I have no doubt will be achieved in the near future. That is for the benefit of all.
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gamunu / April 19, 2016
Yes agreed, but shouldn’t they reduce the jumbo cabinet of Ministers to save a colossal amount money to adjust part of the economy? one has to be politically blind not to realise this.
The strategy of MY3?RW alliance is to grab any number of opposition politicians to run (ruin) the country by offering them expensive perks. In doing so they sacrifice good principles of Yahapalanaya.
They can start making economies within the parliament as a start to set an example before even think of hiking VAT and other taxes on people.
Same old s*** by a different lot. The country is sliding towards an abyss.
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Samare / April 19, 2016
Gamunu they are on a twisted situation.
So, this can only be for a short period.
See, alone the fact that Rajaakahes has been creating tremors within th ethe upfa coalition plate, how can President be away from protecting his allies. I do believe, that is why the good president appoint them further.
But one thing is clear to us is -in the future, UNP will hold the ground – Rajaapkshe is to be blamed not only to allow so, but to have created a situation that nobody ever thought about him.
I really dont think Rajaakshe to be a good and pragmatic leader even in the context of handling the decions took in terms of the war end. There, even any other leader could and should react in that way – knowing the chance of LTTE s defeated nature ot that time. Books that will be in circulated will reveal more trutths about he situation clearing Rajapakshes fairy tales.
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Spring Koha / April 18, 2016
This is a classic case of the elbow not knowing what the fingers are getting up to. As ever, it will be the arse that suffers.
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Babasincho / April 18, 2016
Not only VAT to be increased, but almost life will be not nice inthe days to come – that is no means a fault of current regime but they have to adequately inform the general public without trying ingore it due to petty political gains.
Right athte moment, Mahinda Rajakashes still behaves as if he did nothing wrong… if it is the case, SLFP led parties should make it very clear…
Let people to make their choices knowing the issues well.
Mr Sirisena is a good and patient leader but he must not let him to the booman of the story. Longer he stays mum, Rajakshe extrements will heap up in the country -with people still out of getting mere truth about the previous regime.
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samuel / April 19, 2016
today finally President has expressed it loudly.
He has called them Thakkadiya, Dictators, thieves, etc.. That they deserve as we all know.
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Amarasiri / April 19, 2016
President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe.
RE: Despite VAT Increase, Maithri Says People Won’t Be Burdened With Tax
“His statement came just days after the Finance Ministry, on the instruction of Prime Minister Ranil Wickremesinghe announced an increase in the VAT from the 11% to 15% which will come into effect from May 2, 2016.”
Amarairi will give you a different angle, a different argument, which may allow you to get away with the tax increase.
Distract the people. Tell the people that kidney disease, sugar in the blood have become a big problem in the country, and diabetes has become endemic. This was not the case 50 years ago when you were a teenager.
Ask the people to look at a picture of Mahinda Rajapaksa, Namal Rajapalksa, and your own son,and they all are fat and overweight. This has become an epidemic. By decreasing the VAT Taxes on medicines for obesity and its associated diseases, is the solution, as they are the effects of overweight.
So will go after the cause, yes cause, as per Aristotelian philosophy, love of wisdom. So will increase the VAT on medicines so that the people will try not to be sick, exercise, eat good healthy foods, and avoid being overweight.
So, if the people and politicians eat in moderation, exercise, they will save money on the food, medicines and be healthy to begin with and will come out ahead.
Isn’t that what Buddha taught, the middle path, not the overweight Fat Path?
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len / April 19, 2016
That line been used to death by I knew nothing Obama.
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Maya / April 19, 2016
This man is another BBS (Big Bull Shitter).
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Desparitythoughts / April 18, 2016
iT is right – not just lying.. he has expressed it not for lambogini or other luxury items being imported, the VAT is because theere is no other options to see right at the moment.
Quoting:
“speaking at an event held in Polonnaruwa this morning, Sirisena said that taxes will not be imposed with the intention of burdening the public, and any economic advisor who suggest such will be immediately sent home”
But the person who created the current crisis:
lamented the increase in the taxes, pointing out that even essential items such as medication, which were exempted from VAT will be imposed with the tax with effect from next month. “It is the people who have to suffer by bearing this burden, which will affect ever sector from goods to telecommunication and even electricity,
Latter is lying as he is used to do so while the former is tellin the truth to the nation as to why the VAT is increased. We are not Middle east oil rich folks, we are not zimbawians with gold springs… so as one another poor folks, what is the option before us than VAT.
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samuel / April 18, 2016
I have the feeling… MR injured the people and now try to hurt the wounds too.
See, he has named it today, the country and the economy was like a piece of cake at the time, the new regime undertook from him.
Can you guys imagine ?
So I have the feeling then the Alibaba and 40 thieves have been invited by FCID and other bodies to play indoor games .. not to get information…
FCID may be playing tennis with all the cases got collected withthem ..
All other authorities may be eating the cakes in side.
Mahinda Rjaakshse is proved idiot – who is always twisting and trying to live it abusing the uneducated on and on.
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samuel / April 18, 2016
Rajaakshe increased and eveng grabed funds to keep his men satisfied; but the wound left by him today should be healed before going to do anything else, is the problem that the current duo face.
That is clear to everyone – through vat or other means, they have to settle all the funds collected over the years, Meeharaka has to confess at least today, that his mismanagement created the vacuumm then only he can even relieve the nation. Else,
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Ansar / April 18, 2016
Samuel, MEEHARAKA is saying, quote: The country was like a piece of cake during his time. The only thing the MEEHARAKA didn’t add was, it was like his grandfather’s piece of ckae, which could be cut from anywhere and any amount and eaten and plundered as he wished.
The sad part is there are still more of rice eating meeharakas who go behind this MEEHARAKA. Not ot mention the ill educated meeharakas like DAYAN The DONKEY, DINESH GONAWARDANE, BANDULA GONAWARDANE and the likes.
JAYAWEVA TO ALL THESE MEEHARAKS.
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samuel / April 18, 2016
Very sad situation to Mr President, if he reveals the real burning truth, he would loose for the party for UNP, if he stays mum, still people attacks him as his is seen no doing adequate. -LIKE CAUGHT BY DEVIL..
In the mean time, Mahinda Rajaapkshe has the space to fool the nation as usual – not showing anything like remorseful… ….
Lanken law and order should analyse the issue well – and corner the criminals …. nto leaving this much of space them to roam anymore.
Leaving party politics – doing the timeworthy.
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samuel / April 18, 2016
This is common to so called show off majorities like the lankens and for entire developing folks
They always go behind Rajaakshes wihtout raising the question -why ?
I therefore feell it is their own fault.. they should finally learn to raise the question why current regime go for VAT increases..
Dayan is a proved pingona that betrayed entire educated communities in and out of the country.
He would do anything and everything if the place is offered to him. His mentality is not far from the Rajakashes. Always coming with Maxistic therories, but behaving and lying with the dogs that have looted and ruined the nation to no go levels.
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madhavi / April 18, 2016
Shaaaaa what a great analysis! Samuel, dont you think now it is enough you sitting on your brains! Mere attacking MR is not sufficient now. Its high time to put some actions. And, the present govt loan amount for the last 1 year or so is exceeding what MR had taken for his entire term. For nothing. But you damn blind one-sided critics are singing hosannas to the current losers. Dont know from which end, we should be laughing at.
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Punchilamissi / April 18, 2016
Madahwi,
tell us please what could be the alternative if 2% hike were not the case ?
Do we have oil resources ?=
Do we have minerals or other natural soruces be ready to bring the funds ?
Actions, will be tangible withte time, I have no doubt, they will consider PENDING IMF loans and other concessions, knowing that the move or current regime is pro Human rights rather than had been in the past.
So GSP and other offers being in the way – in the months to come, ascending from now, I really dont think the situation would be like falling from pan to fire.
Best is that they have managed to go down with all the expenses that could further waste the funds. Of course, I am also happy if they did it with pay hikes of MPs too. But there should be some good reasons them to go for that in this current caught by devil situation. Pleasing and gaining –
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samare / April 18, 2016
If you have a brain the size of a needle head, yo would raise the question as to why the current govt took loans `? WAS that to bring Lamboginis to their sons ?
Or to please Srilankens airline entourages ?
Or to kee aside in Seashelves or other bank accounts but not some thousands but billions…
Alone the presidentail secretariat has descreased over 75% of the wastages compared to that of former regime.
They the both fly as we do in normal flights for their foreign trips.. did you see it clearly .. ? so how the both duo have abused teh funds ?
It is really unfair to put the blame on the current men for all the sucks that have been done by Meeharaka Rajaakshe all along.
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BBS Rep / April 19, 2016
Samare,
The point about Meeharak Rajapaksa’s mafia rule is correct.
But your claim that the present day politicians are doing a good job with regards to the economy is wrong. My3 is proving to be just as inept and corrupt as MARA.
My3 has more ministers and deputy ministers now who enjoy similar perks to what was enjoyed during MARA’s time. Most of these ministers and deputy ministers are from Meeharak Rajapaksa’s team. See how they speed about on the roads with police escorts with screaming horns. See their super flashy cars, drivers and security details. Just step into their offices to see the magnificent air conditioned luxury. See how many of their kith and kin are placed in cushy jobs accumulating wealth.
Of course a VAT increase is needed to finance such largesse.
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Sama / April 19, 2016
So what alternatives you have got as the president in current context ? Tell me ? If he would react bold, not giving time dissidents to be loyal and support current efforts for a better future, what could happen ?
Truth is there are two equal groups in the UPFA that would could support/oppose current affairs. If Sirisena s groups was clearly bigger in portionwise, he woud not have pleaseed any one there, knowing he is empowered enough. In current context, he is being pulled by leg – MR being the lead by dissident with larger portion of stupid majority folks fo the nation. Latter are fully ignorant/uenducated masses that would know nothing but live so indifferent.
I think POOR President is caught by the situation.
If he would go against Rajakashe led men – he will lose his mighty within the consensual govt, if he would not do so, he can still give them time to SENSE and be part of the current efforts.
Meeharaka should be cornered putting him in jail, can be the only wayout to see it foward.
He should be made very clear that he is defeated and he has no right to behave as if he is the leader of the nation any more..
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Punchiburamphi / April 19, 2016
Madhavi, please dont start laughing from the unsual end, that can ONLYlead you to incontinence – then again, with the situation in the country, you will have to face even unexpectd, with ever 2nd eligible voters being that indifferent regardless of the realities. Current duo are not magicians, they have to cut the cloth accoringly. We the commentators know nothing but to criticise as the manner JVPs theories would never take ground in the country. I beleive truly saying politics in uncivilized coutnries such as ours ( i mean with majortiies being indifferent irrespective of higher literacy rates) are not like making decisions being european soils. In Germany, if you say in words, that can mostly see in practice also what was being said…. 1 to 1 nature – but in our countries, nthing will go to the manner, even expecting that is like waiting to see faathers from turtles.
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Senthil / April 18, 2016
We srilankans are always stupid – once we believed when we were told that the rice will be brought from moon. MR sold our country and put bones to the public and the public were happy then but when facing reality we are not prepared to accept – there is no miracle, other countries will not feed us for summa or food will not fall from the sky. We have supported MR and why we are blaming Srisena and Ranil now- they never asked us to allow idiots to rule the country. Singhalese are happy to even go and live in Tamils land as long as they get free food. If Singhalese steal Tamils land it will create problem in the future – no point in grumbling later – why those people leave fertile land and go to dry north. It is Delhi’s responsibility to clean the mess they have created or allow US to do something.
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Helayeh maha kalu Johnson / April 19, 2016
Your hate towards the Sinhalese is unbearable to see. Please change your attitude or perish like your “Maha ekaa”…
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JJ / April 18, 2016
A better idea would be to tax ALL parliamentarians on their incomes, which should generate quite a bit towards our sagging treasury.
And what about those assets that need to be declared?????
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S. Prasanna Perera / April 18, 2016
Even private education will be taxed. What a pity. As it was a struggle to find a government school without success how many average parents have opted for private education for their children. It was not that they could afford it with ease but what’s the option…to keep their children at home sans an education? It’s shocking that an educated man like Ranil Wickremesinghe has thought it fit to tax education also. Shame on Yahapalanaya.
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samare / April 18, 2016
so the alternative is your kids to give education at national schools.
YOu need to have all the options. Those who can afford only send their kids to International schools. Meaning not that national schools are not good enough to them. If you cant afford why not see the plan B according to you. Me as one who got the schooling at a national school, I feel so.
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Asangs / May 1, 2016
Don,t be so one sided,get into the shoes of kids of international schools,,there is a vast difference between international and local syllabuses.Do you think they will be able to cope up with local the syllabus.Don,t forget as you told you went to a national school,the taxes charged on international schools are used to improve public education.
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Bagehot / April 18, 2016
Your stupidity may benefit from reading up a bit about economic history. Pay particular attention to what Paul Volcker did in the US during rampant inflation in the 1970s (20-25%)For many years the most unpopular man in the country, and many academics told him his approach wont work.
Today, US inflation is less than 1 percent I believe.
Sometimes you need to take tough decisions to survive in the long term. In any case, I think the private education institutes to be taxed are the ‘kadeys’ that offer unaccredited programmes from very dodgy overseas institutions, cheating our people out of a proper qualification and remitting millions of our currency overseas.
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sen / April 18, 2016
If you enjoyed the “Wonder(s) of Asia” by the previous gov. Its time to pay now.
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sr / April 18, 2016
“President says people won’t be burdened …….”
Is it the beginning of controversy?
However, it’s good to tax tuition classes so parents won’t send children for tuition ( especially O/L and A/L) and will be able to save money.
So they can spend that money to pay new tax; When you levy a tax be sure that people have money to pay it.
Burden the school teachers who are now relaxed because of tuition teachers.
Start evaluating teacher performance in public schools in addition to evaluating children’s knowledge.
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len / April 19, 2016
Every one should cut little bit of slack for the President poor man is struggling complex issue vat vs tax remember he is still trying his best come to grips and understand simple equation ie how to count 30 Ministers.
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Saibu Jayathilaka / April 19, 2016
This is not factual.
30 ministers are for a govt that is built by a party.
For consensual or the kind of national – you can still enlarge the number of ministers.
Just not knowing the bits well, please avoid adding your two cts worth, it is better to jack meeharaka led Joint coalition if you further behave so.
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len / April 20, 2016
Saibu Jayathilaka
[30 ministers are for a govt that is built by a party.]
Wow! explanation is clear as mud if the president of the country is struggling to understand vat and tax one cannot expect Saibu Jayathilaka to grasp complex mathematical number as large as 30.
[on 12th January the President said the number in the cabinet would be limited to 30 As soon as his government came to office President Maithripala Sirisena]
Not my words you Leaders promise. Now I would not dream of calling you a meeharaka Saibu Jayathilaka because it would be demeaning & grossly unfair to all bovines but please read on.
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Brown Boy / April 19, 2016
….. And then that shit all good for nothing MP (Moda Pakaya) from Kurunegala decided to voice his stolen 2 cents worth. Keep talking you scumbag at least the 2 cents will add up so the public get its money back that you and your family looted. This douche lives in Mirihana, wish I knew exactly where, so I could dash a coconut in his head.
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Ceylonese / April 19, 2016
Indirect taxes are forced by the international lending institutions to meet the debt repayment obligations of white elephants built by the former dick. The irony is that they are protected by the government on feeble excuses.
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White Liar / April 19, 2016
To Senthil!
You say “We srilankans are always stupid”. You should mean only the supporters of the Yahapalanayas (not everyone in SL).
Look at the Rajapaksas and the Joint Opposition members and supporters who are enjoying the stupidities and jokes of your people. The Rajapaksas handed over the power right on time to My3 and RW and safely and soundly retreated to their safe-heavens (the Opposition side) which made their job much more easier than facing the messy issues of the day. Now they are showing every single aspect of the current mess and the general public keep asking what the hell this Yahapalakayas had been doing for the last 16 months.
I also notice that every time, RW and My3 speak to media they loose points; meanwhile, MR scores a point even without speaking(in other words, without batting)! If he speaks he scores either a sixer or a four! I listen to all these media questionings and find out that MR still speaks to the point and knows how to score very well even at the age of 70!
My understanding is that Y-Palakayas have messed up everything from the Rupee value to investigation into corruptions of the previous regime (now people want to know who would investigate Yahapalana corruptions which are mounting like the Kolonnawa garbage mountain on a daily basis)!
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