27 November, 2021

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Ranil’s Tax Bombshell

Sri Lankans were in for a rude shock this afternoon, after Prime Minister Ranil Wickremesinghe announced proposed tax amendments in Parliament today, as his government looked at new ways to generate income amidst economic instability.

RanilAccording to the proposed amendments, the Value Added Tax will increase to 15%, while the Nation Building Tax will remain unchanged at 2%.

However, Wickremesinghe assured that the increased VAT will not be imposed on essential commodities and electricity tariffs. Wickremesinghe added that tax concessions granted on telecommunication services, private education and health services would be removed.

Meanwhile, the government will also be reintroducing the Capital Gain Tax. ( By Munza Mushtaq © Colombo Telegraph )

Full speech can be read here

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Latest comments

  • 42
    10

    Whilst this all sounds very challenging to us what does the government do when it inherited a rotten economy from MR. MR ran an economy on heavily borrowed money which had visible progress but with no viable plan to earn from those investments and settle the debt. The people are now called to settle all the corrupt earnings of the previous regime through increased taxes.

    But what the present Govertment can do is to do away with their luxury vehicles and living and feel the suffering of the people. The government must impose severe austerity measures upon itself before trying to impose it on the people.

    • 21
      6

      Our domestic and external debt has gone through the roof due to MARA. Our annual income is insufficient to service debt!!!

      No choice but to keep increasing taxes. Easiest is to increase VAT and NBT. Unfortunately it is regressive and poor will suffer as well. We are used to a subsidized economy and welfare economy and hence poor will have to pay these indirect taxes as well.

      Good that CGT has been introduced on land and shares.

      Also private health and education brought under VAT. All good moves.

      Has to tax the retail and wholesale trade at some point with very few exemptions.

      We have lived beyond our means and get ready to suffer consequences.

      Hope wasteful expenses and corrupt deals will be stopped.

      • 0
        0

        “Hope wasteful expenses and corrupt deals will be stopped”.

        and pigs will start to fly too.

        its the DNA mate.

    • 17
      6

      All the 3 billion USD that Rajapaksa and friends and cronies looted from the Sri Lankan people and stashed in foreign accounts should be tracked down in foreign banks and used to pay off the national debt, rather than loading Mahinda Jarapassa’s theft onto the innocent people of Lanka.

      The IMF is famous for TRICKLE UP – the rich getting richer at the expense of the poor. This is why there is such a massive INEQUALITY GAP in the world today. The IMF has institutionalized and legalized financial crime and corruption in the global economy. No mention is made about tracing stolen funds in foreign bank accounts. IMF just wants to led more like all the other dirty banks that have been bailed out in the west at the expense of the people. Sri Lanka is in a Greece like situation today because the international financial order is so corrupt with the IMF being the most corrupt and rotten.

      It is crime that Basil Jarapassa who stole Sumurdhi poverty funds and the corrupt Jarapassa brothers are free while the poor man on the street is asked to pay for Jarapssa’s theft.

      Ranil must get a communication strategy and explain to the people that he needs to arrest Jarapassa and cronies to trace their looted funds to pay off the nationl debt, rather than loading Jarapassa’s Chinese loans for his white elephant projects onto the impoverished masses.

      • 7
        0

        even an A/L student could understand when you borrow money it shows as positive foreign exchange and will boost the local currency, that’s what happened with MR. On top of this MR never invested in industry, he was after infrastructure development (where there is high commis.). All development was in his backyard. All the shows he and his sons had from IIFA to rugby to car races were utter failure.

        IIFA was a total failure , a fatal miscalculation. People in few years (even now) will not believe that this joker built a station hoping that the Indian crowd will come to KIA and take a train to Colombo- how silly.

        Gotas all beautification is like a spoilt brat spending fathers money. He wants to make Colombo look like Singapore without any income.

        The real ‘benefits’ of MR gangs economic policies are yet to come. There were professionals who were believing that MRs economic plans were fantastic.

    • 6
      0

      Prime Minister Ranil Wickremesinghe

      RE: Ranil’s Tax Bombshell

      “According to the proposed amendments, the Value Added Tax will increase to 15%, while the Nation Building Tax will remain unchanged at 2%.”

      Do What you have to do. Tell the people that this is what we have to do to fix the mess created by the Mahinda Rajapaksa and his cronies for their Family Hegemony and dictatorship, the mismanagement and all the money they stole.

      Make it a debate on the mismanagement of Mahinda Rajapaksa, and the Loans and of course the Lethargy of Yahapalanaya, because of the machinations of Mahinda Rajapaksa.

      You are running out of time. Why not compare Sri Lanka’s tax rates with the other developing countries, developed countries and the services provided to its citizens, relative to the income level? Get some of the Yahapalanaya “Economists” to do the homework for you.

      Do you want to take more loans and pass on to the next Government?

    • 6
      7

      Haha Do explain to me how the debts were inherited from the previous government? before 2015 our economic development was at a plus rate and after the change of government look what has happened. Our foreign reserves has gone empty and we are making deals to sell our country to Arabs. Go ahead, blame me for being a MARA supporter. Just like what the current government is doing to cover their inability to handle the country by blaming it all on the previous government. Do tell us on what grounds you make the accusation that the previous government was in massive debts? Who were we in debt to anyway? who told you this and what are the sources? False rumor lol. This is all due to the idiotic move the government made by increasing the government worker salary by 10000. Crazed for votes that move is draining money like nothing. The oil price is down and yet the government is yet to bring down the prices of petrol and diesel. The allocated debt limit for the year was exceeded within 4 months after the new government took over. There are no new constructions, no development and no crooks in prisons as promised. All we see is theatrics and drama everyday. Thajudeen, Avant gaurd, Lasantha… what else? You people think so highly of this gobba ranil. What of his dirty hands? what do you say about the blatant bank bonds scam? what about his past? Millenium city? Batalanda? Why not talk about those as well? Typical Sri Lankan mentality, party loyalty over everything else. Idiots.. next you are gonna say i’m a hypocrite for being a MARA supporter. I’m nobodies supporter, I just wanna know why you people are so thick headed. Why you fail to see that this government is ineffective. Its run by egomaniacs like sirisena (did not see that one coming did you?) and power hungry gobbaya’s like ranil. The bugger didn’t give up party leadership to Sajith for years, and now he’s saying he doesn’t want power and wants to go home as soon as possible. And idiots like you dotes on all the words the crook says.

      • 1
        1

        Wow

        “before 2015 our economic development was at a plus rate”

        How do you measure economic development?

  • 27
    3

    The elections are over and promised fantasies have to be withdrawn. We have to bite the bullet, while our politicians continue their multi-million rupee profligacy!

    The government is also making unconscionable profits on petroleum products. The benefits of the drastic decline in oil prices have not been passed on to the people. How much does this amount to? Why not this profit be considered a tax towards overcoming the revenue shortfall? Why burden the people further?

    We are also yet paying a fuel surcharge on our electricity, when the cost of fuel is den and we are using more hydro generated electricity? Aren’t we paying a superfluous tax in this instance. How much does it amount to annually?

    How will we earn the foreign currency required to pay back our loans and interest without increasing our exports and decreasing our imports? Should not the government impose severe restrictions on the import of motor vehicles and luxury goods for atleast one year?

    Should we know everything about what is being done with our money, before we bite the bullet|?

    Dr. Rajasingham Narendran

    • 27
      0

      Dr.Rajasingham Narendran,

      Must say I expected better management of our finances from RW & Co. Knee-jerk reaction type economic management is not what I expected.

      As a citizen I do not mind paying more taxes. But, it has to be guaranteed our money will not be wasted. They can spend on schools, hospitals, less privileged you name it. They can spend to build a better Sri Lanka.

      They should not spend on the gigantic Cabinet, useless ministerial offices or their perks etc. These luxury vehicles used by politicians irritate me to the core. These vehicles should be removed from our roads.

      I am not convinced Ravi K is the right man for the job either.

      I cut Yahapalanaya some slack as they inherited total chaos from Rajapassa cronies. But, that excuse is not going to last forever.

      Cheers!

      • 10
        3

        Ben Hurling

        MR being the finance minister did not see it was necessary to submit budget for two consecutive years, probably it took longer to cook the books than expected.

        There had been no protest, not even a whisper, in those days.

        Do you know what did really happen in the two years?

        How much of budget hole was filled with more/bigger holes?

        • 10
          2

          Native,

          Chief architect of our out of control deficit and mounting debt burden is the defeated King. He ruined this nation’s finances from the core. Cronies around him amassed massive wealth from that corrupt regime. Sri Lanka is now teetering on the edge of abyss. I trust RW has a plan to pull us out of there. Inshallah!

          However, Yahapalanaya has done a lousy job so far in educating the stupid public on exactly what has happened. How it was done must be explained in a language even monkeys from Kuliyapitiya would understand.

          People behind such massive corruption cannot go free. Just on Friday Brazil arrested wildly popular ex-President Lula. What have we done? Defeated King from Hambantota has so far been questioned for not paying a few invoices tp ITN. That’s all? How come?

          Where are the mega deal makers & profiteers of that corrupt regime? Where are Dammika Perera, Sumal Perera, Dilith Jayaweera & Asanga Senevirathne? Have they now cut deals with Yahapalanaya?

          How about the extended family members of the former dictator? Who live outside SL with their offshore accounts in tax heavens around the world?

          Yahapalnaya must make the case with hard evidence to the stupid people. Currency of sensationalism has no value any longer. Except entertainment value of course.

          Otherwise only Coconut Thieves Collective will benefit from all this.

          Cheers!

          • 2
            1

            Well said Ben. All it takes is for the PM to come up and address the nation on what was done by MaRa and what the current government is doing. Especially the PM should come forward and talk about his really good initiatives like School dress, Money for fertilizer etc…

            These are all good schemes but the problem as ever with the UNP lot is that the ministers of that party are worst when it comes to marketing this scheme to the public. Akila for instance has been a total failure on this, where by the way he marketed this campaign looks as if even he is not sure whats happening.

            The PM needs a good team. He needs to come out of his group Sagala,Malik etc.. he needs to trust young energetic politicos to take the message to the public. If these are not options then he has come forward and address the nation on the above points.

            • 4
              1

              RW as Opposition Leader gave MR a free ride and he seems to be doing the same with the roles reversed. This is an unprecedented financial emergency. RW must act urgently, and not be distracted by wind bags from the GMOA, JVP, and Muddy Fields. There are far more urgent matters to be attended to than responding to this mob. Act now, otherwise we are doomed.

              • 1
                0

                That is how you the ilk perceived it. But the truth was, oppostion was not given a chance – due to lack seats in the parliament. All was made in favour of them. But ones like you would not see it in this life FOR sure. Your silence made it what we are today – we have lost over trillions as PM pointed out clearly. Majaraja s show off life style ate all the sum – you the guys supported him .. supporting further.. can this be real ? you the folks are born idiots… I dont look down upon down syndrome patients, but they would have thought much better than you guys do- they really do

          • 4
            0

            Ben Hurling

            “How about the extended family members of the former dictator?”

            How about his old school mates who live comfortably abroad?

            • 2
              0

              Native,

              Please name the leading candidates with locations.

              Cheers!

              • 2
                0

                Ben Hurling

                “Please name the leading candidates with locations.”

                You could find out from MR’s friends from his old school.

                One passed away in the UK and one according to what I heard still lives there.

    • 0
      3

      Blah blahaaa Blah Blah Blahaaa,

      You wrote in these pages that if the New Royals come to power the Sun is not necessary any longer the New Royal will light the world. Now crying for the government corporation’s profit. First thing, learn you first lesson of economics; there is no government corporation makes loss or profit. There is no yard stick to measure that loss or profit. That is why western democracies privatize the Industries.

      Then privatize the petroleum corporation and see whether prices are going up or down. I bet it will doable for first few years. After Nooraicholai, the electricity was 200% jacked up. That is how the Lankawe electric power’s competitive ability to compete was handed over to Petroleum Corporation. That why Old King made a contract to recondition the Sabugaskantha plant with 2.2 billions with China when German Company asked only 1.5 billions. He wanted to jack up the gas to another 200% and make it in parity with electricity.

      Old King should have been allowed to continue. Then the international economical sanction whould have come. America whould have stopped the GSP+. Lankan Rupee Currency should have been recreated like German did after World War II. Then the New economic structure will stem from the ability of the Sinhala Intellectual’s Trading Capacity. The current one is following the one Britain and Tamils put together. It is had to maintain for the Sinhala Intellectuals. Please don’t keep writing thing that does not go into head! Thanks in advance.

  • 6
    6

    The one thing they should tax is Electricity. Just tax this at 15% and remove all other taxes. This will ensure the rich pay more (they use the most electricity) and the poor pay less.

    Also this is the only tax that they can measure (Electricity meters) and collect with 100% efficiency and no corruption. Just get the electricity board to write a cheque to the treasury every month.

    • 7
      0

      Those who use more electricity than 100 units/ month are already taxed heavily through an unjust and punitive charging system. Even in Colombo 7 homes only a few lights burn now. Whichever home has lights blazing is more likely that of minister, a politician or their cronies.

      Dr.RN

  • 13
    3

    Well, the big picture is as follows. Sri Lanka is one of the most lowest taxed countries in the world.

    Eg. (as per the GDP)

    Sri Lanka – 10%
    Australia – 25%
    India – 17%
    Malaysia – 15%
    Italy – 42%

    https://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP

    The more advance economies tend to tax more whereas less advance ones less. The govt need revenue to pay debts and deliver quality services.

    With the new changes the tax collection went up from 10% to 13%. Its still very low.

    The duty of the citizen is to ensure their money once collected is not wasted in inefficiencies and mismanagement.

    • 0
      0

      is this direct tax or indirect tax? SL will have a high indirect tax.

    • 0
      0

      How much and at what percentage are we paying indirect taxes-see?

      Dr.RN

    • 0
      0

      vibushana

      your own link shows srilanka is 11.6%,not 10% as you claim.Also singapore is 14.2% a diff of 2.6% over us.So yes we should raise the taxes a bit but at the same time we should cut our expenditures too.If we increase tax revenue by 10% for example,we should cut expenditure also by 10%.The first expenditure to be cut should be the administration expense of the country which is a fixed overhead.Do we really need 225 MPs,more than 50 ministers,so many provincial councillers,so any vehicles for them etc.Without first cutting these if we increase the burden of increased tax and cuts in expenditure that will affect the people then there will be a backlash at the local government elections.

      First start with reducing the MP’s.I believe 100 instead of 225 is more than enough for a small country of 22 million people.If you look at india with 1250 million then proportionately to the 225 we have they should be having 12600 MPs in the lok sabha whereas the have only 550.

      wave goodbye to ranil and maithri at the LG elections in july.Without the power at the grassroots level wave goodbye to them at the next parliamentary elections and provincial council elections too.

    • 1
      0

      Hello folks,

      The 10% represent all taxes relative to the GDP. Your personal tax may vary depending on your circumstances.

      shankar,

      The figure constantly fluctuate. At present it stands at 10%.

      The big ticket expenditure items are infrastructure investments, interest payments and salaries and wages.

      Reduce the expenditures – almost certainly. Most in favor of reducing number of ministers and their perks etc. Although the waste would not amount to much there.

      The biggest issue is interest payments in USD terms. The USD has increased relative to LKR. This has created a balance of payments crisis that did not exist before. Its a global problem many central banks are forcing to deal with.

      The USD went up after their federal reserve increased the interest rates after so many years. The USA economy is doing well. Their central bank just needed to apply a brake to force it from overheating.

  • 4
    3

    True, most of the loans are inherited from the previous thieves, but what this government did. Did this government controlled unnecessary expenses like spending on unwanted huge army , buying modern weapons to fight whom (US, China or India), highways for poor people to beg, and many more. Curtail all unnecessary expense before robbing poor people. Airport to North (palali) is important but not on the agricultural and on peoples land – it has to be relocated to baron land which is not suitable for cultivation – you need proper planning and feasibility study by experts and should listen to the affected people as well. Acquiring and destroying valuable land because it is belongs to Tamils is very bad planning – then the government have to increase more and more tax until the country becomes another Somalia or every one die on starvation- choice is yours-voters.

  • 22
    1

    before you talk about increasing taxes REDUCE ALL BENIFITS GIVEN TO MINISTERs! LEt them pay the electric bill,phone bill, water bill etc.Reduce thier pension. Dont give them permits to import tax free cars. Reduce the petrol given to them free of charge. Reduce the spending of the PARILIAMENT which provides free food damn ministers. LET THEM STARVE! Then thier colosterol will be better and also thier intelliegence will increase cause then dont have have the burden opf carrying their over wieght stomach pounds eating this free food.
    DO THAT FIRST! THEN WILL TALK ABOUT TH EECONOMY YOU RETARD! RANIL!

  • 18
    0

    This is absolutely wrong and unacceptable and shows the imprudence of the UNP leadership.

    First and foremost all tax concessions granted to politicos should be abolished completely; even the Supreme Court asserted that these abuses are wrong but refused to intervene as the government had permitted these abuses to be continued for unjust enrichment.

    Also initiate action to abolish the decentralised budget allocations for all MPs (15 million for each MP), work on which is exempted from an audit by the Auditor General.

    Restore strict law and order in the all three major revenue agencies (Customs, Inland Revenue and Excise) and enforce penal sanctions as provided by law against corrupt elements, rendering such elements incapable of serving the government. Install a call recording system in all revenue agencies and declare interference in any form with the affairs of these institutions by any Member of Parliament or Cabinet Minister a actionable wrong with automatic dismissal from office.

    These actions are possible but only with a genuine will and commitment to serve the Nation, and this is what the people expected from the Yahapalana Administration

    • 0
      0

      “These actions are possible but only with a genuine will and commitment”

      are you implying that we should import mahathir?i think he has some free time now and if we tell him to run the country for two years it will be transformed.Naga,you know very well that there is nobody here who can do that job that requires a backbone,ranil and maithri don’t have one though they are decent blokes and the rajapakshes are rouges and thugs except the eldest who seemed a decent fellow.Whenever we don’t have local products don’t we import?So what is wrong in importing a leader?Prabha decimated the leadership of the UNP,otherwise gamini or lalith would have done something and the SLFP was always weak in leadershp and the hambantota crooks had a easy time taking over it.

  • 5
    0

    Mr Vibushana,

    I am sorry, I have to disagree with you for a reason.

    In 1970’s State Revenue to GDP ratio was over 20% and it went bad to worse solely for the unchecked corruption, condoned by successive government ruled the Nation since then.

    Restoring the Rule of Law in government revenue agencies will definitely improve the tax revenue; just increasing the tax burden with only make law abiding citizens pay more tax.

    • 0
      0

      Nagananda,

      Can you please clarify what percentages direct personal income taxes and indirect commodity levies were of the total state revenue before, during and after MR’s tenure as president?

      My impression is that we are paying a lot more in recent years by way of these commodity levies- a form of indirect taxation.

      Dr.RN

  • 5
    0

    Sri lanka borrowed heavily by issuing so many bonds, and those who wanted more interest on those made those junk bonds, so they cn charge more interest.

    they borrow and have their dreams, people have to pay those.

  • 7
    0

    The increase taxes were coming. But why did it take so long ? Also the Govt should have cut back drastically on their hugely excessive spending from last Jan, or at least after the elections last year and set an example to the people that there was a financial problem in the Country.Instead of which they tried to paint a wrong picture that every thing was ‘tickety boo’: for whose benefit?

    Further they have a lot of wrong people in the wrong positions of power who are woefully incapable of dealing with the Countries woes despite the fact that they do have capable men. Now they are saddling the people and the Country with immense burdens. It would have been softer if 1) they dealt with these issues much earlier, 2) they had cut back on their luxury spending on international stays/travelling, luxury vehicles, tamashas,and luxurious living,3) they had NOT appointed ( they are still holding their positions)inadequately incapable persons to important positions, and 4) they had listened to the peoples “voices” of criticism instead of brushing them aside as insignificant.

    At least at this late hour do the right thing by addressing these issues now that you have raised taxes and let us see that there is a sincere and genuine effort to ‘right the wrongs’ or else expect the worst.

  • 2
    1

    Mr. Nagananda,

    In the 70s people earned less and payed more taxes. Now its the opposite. It hurts but absolutely necessary.

    If I was investing in Sri Lanka I would be attracted to come there more because the govt is taking unpopular yet prudent fiscal policies.

    If someone cannot afford to buy bread I don’t see why they cannot eat cake!

  • 1
    0

    Our taxes appear reasonable, but the system of collection is crying out for reform. We should introduce the PAYE system deployed in several developed nations for workers and also make use of “Tax at Source” for most other cash transactions and leave it to the recipients to claim the tax back if entitled. E.g. I have not known any landlord to pay taxes on their rental income. Commercial tenants should retain the taxes and pay them to the Tax Authorities and private tenants should be mandated to include rent as an allowance which then enables the Tax Office to record the value and tax the landlord accordingly. The landlord is entitled to claim back his/her expenses on the property.

    • 3
      1

      Sylvia Haik

      “We should introduce the PAYE system deployed in several developed nations for workers”

      Sri Lanka Inland Revenue Department has been operating PAYE for more than 50 years.

      Why do you want another one?

  • 2
    1

    You sound like Marie Antoinette, the queen of France!

    Dr.RN

  • 1
    0

    I agree with the Gune on the matter of the Govt imposing severe Austerity measures before imposing on the poor masses.
    Look at the Govt Ministers who go about with two to three defenders police motor bikes. The President goes about with about 10 defenders and an ambulance. The PM goes about with about 5 defenders. Can the President & the PM cut it by half. Can the ministers & MPs do away with their back up vehicles. Can the police be employed in keeping the underworld in control & eradicated.
    Won’t this be a colossal reduction in Govt spending.

    This is were the Govt can show an example to the masses. You President, PM, ministers & MPs are having & living in the lap of luxury and asking the poor masses to tie their belts.

    Don’t be Hippocrites come down to earth.

    • 1
      0

      Agree to this point but the PM has cut down the ministerial and his own vehicle count by more than half. Where were you during the Mara regime?

    • 0
      0

      @Shri

      Don’t worry

      Soon our Yahapalana Boys will travel incognito in Tata Nano’s, incognito, followed by one Indian Ambulance

      All this will come to pass when the ETCA is signed. Apparently money will come flooding in and Indians will buy up all our exports ad give us Millions so we can pay down our debt

      • 1
        0

        maalu

        “Soon our Yahapalana Boys will travel incognito in Tata Nano’s, incognito, followed by one Indian Ambulance”

        I am not sure whether one can fit an individual’s ego into TATA nano leave alone the Boys.

    • 2
      0

      I fully agree with this blogger. First PM, get his herd of buffaloe ministers and MPs to drastically reduce their perks and luxuries, get every bugger in the Parliament to pay taxes and import duties on their vehicles, ration their fuel, reduce everything down and let them set an example of how to live within one’s own means. Get the corrupt ministers that gave away government built houses to their kith and kin to return them or pay the market price. Send to jail all corrupt MPs and government officials that have been passing on public assets to their friendly businessmen on knockdown prices, and confiscate those properties.

      With this division in the nation and ever widening gap between them, haves and have-nots, I think the country is now ready for a revolution of the same type as French Revolution, Soldiers should join the people and show these w****rs in the parliament that enough is enough.

  • 1
    1

    YOU Pencil DI k pervert first give up you and your ministers unnecessary expenditure. REduce rajavsasssas expenditure. If it is a burden to protect this unwanted criminals who rob tax payer money bump them off. YOU BONELESS COWARD!

  • 1
    0

    What can the authentic elephant do,when MaRa went for White Elephants all over the countryside? Besides it was on loans! Champagne for the Rajapakses,Toddy for the rest of the folks.
    I am in agreement with Naga to abolish the Rs:15M.Decentralised Budget for each MP at least till the Robbed money stashed away somewhere[Only God and MaRa know where!] is finally brought back!

  • 4
    2

    The fact I speculated then and now I can confirm, is under Mahinda, economy was doing great. This is the main reason I opposed for a regime change, The Indians won, They did not like our harbors getting developed! China was helping us to become a great service provider in maritime sector. We could do the same in Aviation too, Casinos, every thing.

    Everything has stopped,

    I told my friends that next on the line were the tax hikes! Everybody thought Mahinda was robbing the country! Now Nothing saved, No development, All we have is a frustrated country!

    Before human rights, we need economic development!

    This is our nature. We always screw up something great in the hindsight!

    We need a strong government to kick ass all the bullshitters and develop the country! No investor will come under these conditions.
    Unstable currency, High cost of infrastructure!

    Curse of the nation will befall on Maithripala for this debacle! Without him these UNP idiots will never defeat Mahinda!

  • 0
    0

    UNP too are pulling the wool over our faces.

    Upto now, how many politicians have undertaken overseas jaunts?
    Now the Agriculture ministry think paying 21m in resnt for a building was bargain when they could have constructed one from scratch.

    Ranil is involved in temporary fixes and hog washing instead of putting his foot down on all extravagants & luxries of politicians?

    Are we going to get a Spa in the Port premises as well?
    Coconuts too look helpless.

  • 2
    0

    We seem to have gone from no discussion and just putting patches on VAT as treatment. Prime Minister’s picking VAT shows lack of understanding in the present taxes in the country.
    A fair assessment would conclude that well-designed revenue policies have the potential to raise economic growth, but there are many stumbling blocks in the main revenue departments along the way. Certainly no guarantee that all tax changes in VAT will improve economic performance. Given the corruption prevailing in Customs, Inland Revenue and Excise departments through which tax properly enforced will not require increase in VAT. A tax change will be more growth-inducing to the extent that it involves if these departments fail in their responsibilities to recover what’s due to the government. I am convinced that these departments are able to fill many gaps in income generation.
    By increasing VAT the Sirisena government has already shown it is unwillingness to address tax issues to the people. Let’s hope it will focus on inefficiencies in the present revenue sources to help the country.
    Patches will not treat the ailments.

  • 2
    0

    All public servants and politicians should also be made to pay tax.The Rs 10000/- salary in crease to the 1.3 million public servants is the cause of this economic problem. The cost of living is going to sky rocket.Some one stop these crazy politicians.

  • 0
    0

    Fiscal irresponsibility of these nincompoops !! There’s nothing left of the original budget…you should have planned ahead for the revenue shortfall which was evident in the first budget.

  • 1
    0

    These tax percentages are nothing compared to the tax the people pay in countries like Aus, NZ or Canada. I mean what do you expect the PM to do? The rajapaksas have left the economy in shambles, with the expenditure on debt repayment going over the roof and reaching the sky. The sad part is that the stupid uneducated village rowdy Rajapaksa gang did was not to create income generating models from these debt. Instead he crafted white elephants to satisfy his and his fathers ego.

    No reform is better until the reform touches the society. The people of Srilanka should come out of the shell of concessions and work hard for a country where they would no longer need concessions. Amidst political instability the government should work its way through this ASAP and implement income/employment generating models soon.

  • 1
    0

    This man RW is protecting MR and his clan, and all the corrupt parliamentarians, because he is scared in case they come back to power. Instead of going out and reclaiming the money those crooks have amassed in foreign banks this useless PM is hell bent on burdening the average citizen with extra taxes, to make up for the stolen national assets and misappropriation by people in the government. Why should the people pay for all their excesses, continuing round the world trips to the President and all their ministers, families and hangers on, living in 5-star or more mega luxury hotels , all paid by the taxpayer, and they are enjoying themselves, we have to prop them up even if we cannot afford to feed our families. They get everything free wherever they go, so why should they care.

  • 1
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    How much impact had the costly war in 2009 on this tax increase? And the maintenance of an oversized military?

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    VAT responsibility chain from start of recorded history till date:

    ancient kings extortion > Dutch extortion > Portuguese extortion > British extortion/wealth repatriation for 138 years immeasurable > mismanagement / failures of various regimes > JR regime privatization > RP regime mismanagement > DB mismanagement > CBK mismanagement > MR mismanagement ( loss more than that of 138 years of colonial rule and to the satisfaction of intelligent MR bashers , and finally MS regime from Jan 8th till now

    Exclusions :

    VAT is not a result of :

    the 30 year LTTE war which came to a natural end on May 18th 2009 ( for no effort of anyone )when there was no regime in power

    the 88-90 JVP insurgency and the then governments public acts of extreme kindness which overcame the JVPs peaceful revolution

    IMF / World bank facilitating rich money to the poor and imposing economic policies to recover interest i.e. income for the rich donor nations

    Conclusion : Perhaps Sri Lanka should learn to live within its means.

    What this means for the common man is walk or cycle to work and let ministers use public transport (so that ministerial perk is reduced from ultra luxuries to where the common man was before) and of course the president renting an apartment at the Galle face hotel

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    Yahapalana CEO Batalanada Ranil cut loose the Chinese and stopped the Yuan helping our Dalits.

    In the process Batalanada is doing a great favour to the long suffering black people in Africa.

    China is the main investor there now, and helping the African Blacks to at least get to the 20th Century from where there were left by the White Bros of the West.

    Now Batalanada Ranil is slugging the Yahapalana suckers with VAT & CGT to help pay back the the Western loans,and LKR Bonds which his CFO Galleon Ravi organized with the help of Ranil’s Singaporean buddy and his Son in Law.

    Loans which Chinese gave for next to nothing or in fact payable when able sort of terms, have been refinanced at 6.75 % from Bank Consortiums which are looking after the Nest Eggs of Sugar Dadies to diaspora LTTE Business enterpreneuers who won’t get even 0.5 % for their US Dollars and British Pounds in their countries…

    Quick glance at the budget figures and Batalanada’s new Tax measures do not abode well for our Motherland going forward.

    Batalanada says all these Taxes are to pay loans.

    Where is he going to get the money to build Roads , Train Lines, Schools and Hospitals.let alone Harbours and Airports in Trinco and Pallaly?

    Batalanada’s bullshit is coming to bite the Yahapalana suckers in the bum.

    Foreign reserves which the previous Govt left at the time the Singaporean took over is now less than 70 %.

    That is in just 15 months.

    Foreign Investments have dropped by 33 %.

    Just imagine what it will look like in another 15 months even with Batalanada charging extra 4 % for Ham ,Bacon and Black label of the Colombo Elite and the Anglicans.

    Vellalas must be happy that they don not indulge in any of those consumer items.

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      “Yahapalana CEO Batalanada Ranil cut loose the Chinese and stopped the Yuan helping our Dalits.”

      Which Dalits you means Sumane? The ones ate the Aappa at New Jersey Party and got up and fought for a woman or the ones visited to Geneva with Sinhala Cinema’s supporting actress or the Dalit sent $18 Billions to Swiss and Dubai Banks? None of them are Kerala Mercenaries converted as Kandian Sinhala Intellectuals anyway!

      “Loans which Chinese gave for next to nothing or in fact payable when able sort of terms, have been refinanced at 6.75 % from Bank Consortiums which are looking after the Nest Eggs of Sugar Dadies to diaspora LTTE Business enterpreneuers who won’t get even 0.5 % for their US Dollars and British Pounds in their countries…”

      Which Interest you are talking about? The Nooraicholai power plant which Chandrika negotiated at $250 Millions and Old King renegotiated at $ 540 Millions or the Sabugaskanatha Plant when German company wanted to do for $1.5 Billions but the Chinese quoted $2.2 Billions?

      I never did know you were also in the list of the ones go by SLTB buses to crowd gathering for Biryani parcel and a sip of arrack.

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    If corruption is eliminated at the highest levels the tax burden can in actual fact be eased.

    Unfortunately politics and corruption goes hand in hand in Sri Lanka just as violence goes hand in hand with Sinhala Buddhism.

    Ah what the hell. Is any news in Sri Lanka good news? Just shut up and pass the bottle please.

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    Mr. Ranil Wicremasinghe ( Hon PM )

    With all due respect to you and your intentions, before you intend to increase taxes there are a lot of other measures that need to be fullfilled by your govt.

    1. What is stopping you from investigating the wealth hoarded by all the politicians of this country. We citizens know very well that every politician has not paid genuine taxes and all of them are in default. One does not need a magnifying glass to check that out.
    When it comes to an investigation, either it is slow very slow or swept under the carpet.
    2. Why has the Tax Dept not been modernised in keeping with the progress of the country. If there is something called progress.
    3. What about all the people who are not registered with the tax dept and who do buisness getting away free handed. For example take all those who give out houses, annexes, rooms etc for exhorbitant rents are unaccounted for. What about the average buisness men who do daily deals under the counters. What about the private bus operators who regularly refuse to give back change money other than harsh filthy language to the passengers, what about the smugglers who get away with their ethanol and drug imports who pay small fines, what about all those who drive around in BMWs, Mercs, Audis, Lamborghinis etc etc.
    and many other shady characters in the country.

    Like in the developed world particularly in the UK, US, Australia, Europe, why is that every citizen is not registered with the tax dept after the the age of 18 and asked to apply for something similar to the following.

    United Kingdom—-National Insurance Card NIC
    Australia—-Tax File Number. TFN
    United States—-Social Security Number SSN
    Singapore—-ID card registered with tax dept
    New Zealand—-IRD Number
    Canada—-Social Insurance Number SIN

    Many more too numerous to name.

    Mr PM you are supposed to be a clean person which is very rare in SL and those clean hands are a powerful weapon, so what is preventing you from using your clean hands to empty the garbage bins and squash the vermin crawling inside. Are you scared to soil your hands, or is it that the vermin inside will squirt their poisons on you. ?????????

    The average citizen in the country is clueless about the tax system since independence because the tax dept was neglected delibrately by the robber politicians and never upgraded. Right or wrong ???????
    Even at present if a employee of the tax dept is given a manual in english to be referred or studied, they cannot read it because of their lack of knowledge of the language. Even to send them abroad on a training programme they lack the knowledge of english.
    This applies to the Central Bank and all Govt establishments.
    There is a joke about the CB and when some officers were asked about the world renowned Paypal payment system they replied that it was used to launder illegal money. So much for Sri Lankans. Shame, shame !!!!

    Anyway Mr PM you and your Yahapalanaya Govt is not making much headway and there are omnious signs it is heading straight down the pallang with no breaks. The best you can do is to jump out now before it crashes and you become a victim. Its not late.

    ” DISCE AUT DISCEDE “

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    The current government cannot cut its own perks because it is of two parties and on of them has most of the ministers of the Rajapakshe regime. The UNP if they went alone will collapse. Even today MR tries to force a collapse and demand that all investigations into his corruption is stopped in exchange for the continued loyalty of the SLFP ministers. Maithripala’s hold on the SLFP is weak. Cutting the perks of the ministers is a very good idea but impractical under the current conditions. Useless hurling abuse at Ranil. It displays a vindictive hatred toward one of the only honest politicians left who is trying very hard to sort out the mess. YOU CANNOT TURN SRI LANKA AROUND THAT EASILY.

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    Reintroducing Capital gains is not the least conducive, in fact, its counter-productive at a time when private land is scarce. An added tax burden will definitely discourage sellers. I feel the move is myopic not paying attention to wider ramifications. For the first time, I am seeing some desperation in the Yahapalana govt.

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