While the public was ordered to tighten their belts, and pay up increased taxes, Finance Minister Ravi Karunanayake this month imported a brand new super luxury Mercedes Benz from Germany with a duty free vehicle permit, which resulted in the country losing millions of rupees in revenue.
The total tax waived off for Karunanayake’s luxury Benz which was imported on November 2, 2016 is approximately Rs. 29 million on the vehicle. The custom’s declaration form in possession of the Colombo Telegraph has been signed by the Finance Minister himself.
According to the Ministry of Parliamentary Reforms and Mass Media, which issued the permit to Karunanayake, the CIF value of the vehicle should be US $ 62,500 or any other currency equivalent to this amount for a petrol or diesel vehicle, and Karunanayake can import any vehicle of his choice and no limit was granted to the engine capacity of the vehicle.
Meanwhile in a letter addressed to the Director General of Customs, lawyer and rights activist Nagananda Kodituwakku in a letter dated November 10, 2016 accused the Director General of intentionally violating the Constitutional rights conferred in all citizens in terms of Article 14A (1) (b) of the Constitution and Section 3 of the Right to Information Act No 12 of 2016 and also the provisions of Section 6 Paragraph XLVII of Volume II of the Establishment Code – to obtain the said information helped with the office of the Director General of Customs.
Kodituwakku accused the Director General of Customs that he had not only violated the public trust placed in his office, but had abused his office to protect the interest of dishonest politicians, while also helping them in unjust enrichment by defrauding the government revenue.
At least 77 MPs in Parliament have used their duty free permits to purchase luxury vehicles in 2016 alone, which has resulted in the country losing billions of rupees in revenue.
Most of the vehicles that have been imported have been Toyota Land Cruisers, Hummers, BMW’s and Mercedes Benz. In July, Kodituwakku told the Supreme Court that the MPs instantly make as much as Rs. 25 million for each permit they sold, which they receive free of charge from the government.
After coming to power, the Maithripala Sirisena – Ranil Wickremesinghe led administration, having appraised the colossal losses sustained under the Mahinda Rajapaksa administration, in its first budget presented in the parliament on November 20, 2015 declared that government had incurred a heavy loss of over 40 billion rupees on tax free car permits, therefore the administration proposed to abolish all such permits altogether including the permits issued to MPs which was openly abused by them.
However, few months later, the same Finance Minister Ravi Karunanayake who presented the initial fiscal policy statement made a U turn and made an order (published in the Gazette (No 1965/2 of 02nd May 2016) under Sec 3C of Excise (Special Provisions) Act exempting levies on motor vehicles imported by MPs with CIF value up to US $ 62,500/. However, as required by the law to protect the government revenue, there was no condition whatsoever imposed against the abuse of such permits, allowing MPs to sell their permits in the open market.
By Jingo / November 12, 2016
Looks like the Yahapalanayas are seriously competing with the Mahinda Chintanayas’ excesses and possibly trying to outdo them – impossible though it may seem!
Sri Lanka is cursed with whoever who gets to lead us (along with their cohorts) ends up being utterly corrupt and hypocritical.
Where do we go from here???
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Roshan Raj / November 12, 2016
President, PM, FM or any Minister can buy 60,000USD CIF vehicles, which is happening for many years in Sri Lanka.. MPs Drs, high profile Gov delegates all driving BMW, Benz, Prado ext and i have seen this, since i was a school kid,.
we see 1000s of these vehicles on road and specially Mahinda and his relatives and ministers were not riding 2 or 4 luxury car or jeep !! they were distributing 400 – 500 benz and BMW telling sum stories and they were closing roads and showing their royal attitude! why are we wasting time on one vehicle imported by a cabinet minister.. if Mr.Ravi wants to do something wrong he would have used sum other name,. easy. so dont try to just keep on fining fault in this Gov. one vehicle imported by MP in his own name is not a big news.
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Jagath Fernando / November 12, 2016
Ranil’s yahapalanaya at its best!!
Every politician with Ranil is a crook with no exception. No different to MARA henchmen.
We citizens are at fault for bringing these guys to parliament.
They have no shame and loves living off the tax payer.
Hope every politician who has made use of this loop hole of getting luxury vehicles for nothing are defeated at the next election.
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punchinilame / November 12, 2016
Now that there is freedom of expression and no fear of public litigation, the best is being displayed. The Court ruling was
that this “waiver of tax” is a part of a known Govt. Policy. So
the media, specially CT uses this a head-lines, for the sale of
its news!
It will be interesting to know the total tax-waiver on Vehicles cleared by each Govt. since the Tax Free Imports commenced for
Govt. servants, M.PP etc. Therefore the Minister of Finance has
apparently not committed any offence is one view. Make hay while
the sun shines is the mode adopted.
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jim softy / November 12, 2016
Article state ther Waived Tax wrong.
It is Rs 29.95 million. that is more than 29 million and it is almost Rs 30 million.
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Dr.Rajasingham Narendran / November 12, 2016
Duplitious men feathering their nests, heartlessly without any compunction or conscience. What a revelation after Ravi Karunanake presented a ‘Pick Pocket’ budget. Luxury high end car for him and carbon tax for himself. Would he also ‘Carbon tax’ the millions of homes that cook their food with firewood in rural Sri Lanka?
Dr.Rajasingham Narendran
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Dr.Rajasingham Narendran / November 12, 2016
Correction: & carbon tax for us.
Dr.RN
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Ananda Markalanda / November 12, 2016
Deception has bwcome a cultural norm in politics from the time Sudda left for our own rule. The good example is their white dress. Our politicians evidently believed that the way to consolidate and hold political power would be to improve their lifestyle and not of the electorate. They deceived themselves into believing that government programs would stimulate the economy sufficiently that repayment of the borrowed money would not be a significant issue. Unfortunately for citizens it has not worked out that way, an economic disaster.
This is the face of our political class: arrogant, authoritarian, and on the level of some banana republic.
Welcome to Yahapalanya !
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Ahmed L. / November 12, 2016
Budget is his duty. A Vehicle is his entitlement. Selling the permit is greedy.
Why would parliament approve this? Rajitha says “Sri Lanka ministers need good vehicles to serve people” Link: https://goo.gl/tN9Uak
The ferocious sense of entitlement filled with greed makes them get the max out of what is given. I guess it is in majority of Sri Lankans’ genes. I still can’t understand why this policy would not be changed and politicians are given vehicle allowances, instead – Then we will see them driving Marutis.
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thrishu / November 12, 2016
Only a thunderbolt from the sky should dispense justice to these selfish, greedy, politician bigots. They wallow in luxury while imposing tremendous burden on the average citizen wondering how to buy medicine for the sick, how to cloth the kids and even how to find the next meal. Stupid people send these baskets to high places and this is what they get in return.
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eldorado / November 12, 2016
Doesn’t it bloody stink. Rotten to the core and we are the dung in the heap left by these cussed SOB’S. If there is an Almighty any where OR a life after, these beggars should be re-born as VERMIN OR WEEVILS, they are the scum of this earth.
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S.Fern / November 12, 2016
Do CT want a Donald Trump in Sri Lanka when we are so close to a federal solution?
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Hesh / November 12, 2016
Ben Herling and Native Wadda, the foot soldiers maintained by Ravi/Malik should be quite happy.
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Plato. / November 12, 2016
Tighten your belt; I will also tighten my belt when I travel by Benz says Ravi.K.
His Tax proposals are based on the famous quote of Marie Antoinette;
If they cant eat bread let them eat cake!
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Parakrama / November 12, 2016
“Sri Lanka is cursed with whoever who gets to lead us (along with their cohorts) ends up being utterly corrupt and hypocritical.
Where do we go from here???” By Jingo
It is high time that Sri Lankan voters realize without further doubt, that both UNP and SLFP leaders who ruled the Country during the past 67 years have deceived all of us willfully. During the days I did caste my 1st vote in year 1977, MPs and Ministers traveled by Train to Parliament and returned home for the weekends. See the mode of travel by Parliamentarians today, ie’ super luxury vehicles with back-up vehicles and armed guards at public expense. Even after ending the war and pronouncing that the Country is broke due to excessive debts, politicians continue in the same vein.
Same time look at the status of our train and bus services today and the plight of commuters. During rush hours people are being transported like a herd of cattle both in buses as well as trains.
Do we need anymore examples to realise how treacherous our politicians are.
Let us look for alternatives during next election. In the meantime necessary institutional and regulatory framework comprising of Independent Commissions, RIB, Audit Act etc should be strengthened/introduced to rope the marauding politicos of all sides and bring them in within a democratic and civilized framework.
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Rock Hudson / November 12, 2016
This is bad journalism by CT the timing of this story helps the JO.
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Sherantha / November 12, 2016
This both parties and it’s rogue politicians is the curse for this land period. they have changed this land of natural sources to poor starving , deal makers corrupt rogue nation .. my opinion is JVP should be given a chance
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Nuwan / November 12, 2016
The blame should go to the parliament, which should have changed laws to ban the sale of permits. Nitpicking Ravi’s permit is unfair.
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John / November 12, 2016
We expected moral standards from the calibre we knew of these individuals in the UNP, to make a stand by refusing this ‘perk’in sympathy with the masses in SL who battle the high COL. You have now clearly demonstrated that you are no different to the rest of your tribe Mr Ravi K!
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Ranjan Fernando / November 12, 2016
Deception is practised by most politicians round the world. But there are a few honest decent ones in other countries.
Unfortunately we in Srilanka have only duplicitous politicians who deceive us day in and day out wearing their white sarongs and carrying mal watties to the Pansala.
Such a shameful lot full of greed and no religion in their heart. Will send a million hapless women to slave in the middle east and buy luxury vehicles for themselves free of tax without any pangs of conscience, from the the foreign exchange earned by those poor human beings.
Like Hambantota Amaraweera said “we have now enriched ourselves, now we only need desserts, but the other lot once they come will have to begin from the starters, main meal and then the desserts”. Now with Ravi Karunanayake we have now seen the starters. Let’s see what the main meal is going to be like.
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Pentheus / November 12, 2016
Ayi Kwei Armah (author, among others, of THE BEAUTYFUL ONES ARE NOT YET BORN)wrote that the trouble with the people is that they are not angry enough. (I would add, angry about the right things and in the right way. By the way, Armah deliberately mis-spells BEAUTIFUL).
The people are readily, violently, incensed about Tamils, Muslims, real or imaginary slights and dangers to Buddhism; the threat of extinction faced by the Sinhalese ‘race’ (though an overwhelming majority) but not about corruption.
Is it that they have come to take outrageous corruption as a part of life, like poverty, violence and crime, the heat and the flies: something to be accepted and endured since nothing can be done about it? Why don’t they take to the streets on corruption as they are ever-ready to do on other subjects?
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Adrian / November 12, 2016
He is not the only one. All the parliamentarians are in the same game. Next time elect a better politician, except MR,MS,RW and their cronies. Introduce a new constitution where parliamentarians will not have powers to be abused. Re-collect all the abused dues to the treasury, with hefty penalty from all those who abused their powers. Let new political party with reliable undertaking come forward.
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kumaran / November 12, 2016
Ravi K, Mahendran, and several others of both sides have together caused chaos in the country. Civil Society must rise up and DEMAND the resignation of this corrupt man as well as others. Civil Society has the key.
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Sampath Perera / November 12, 2016
This is not a comment on the above story but to give some information to your web site on a matter of public interest.
As you may be aware that Ven Pahalagama Somaratana thero, Head of Thames BUddhist Vihara, London was found guilty for raping an under aged girl some thirty years ago while he was with London Buddhist Vihara. Accordingly he spent a jail term of 06 years and after which released on strict conditions. According to the judgement he was not allowed to be in contact with young children for life. His name was also included in the list of Paedophile Offenders in UK. If you google his name ” Pahalagama Somaratana” you will see more about him including the judgement on the rape case.
After his release he is not allowed to live in the temple but he started wearing yellow robes like a Buddhist monk.He has rented out a house but the Council is not paying the rent as he has got a very big savings account all contributed by his devotees earlier. Some money he has invested in Sri Lanka with his brothers.
He left for Sri Lanka today and will reach Colombo tomorrow. He will proceed to his Gampaha temple which he owns. He is running a home for children at the temple and this sex predator will definitely be a threat to these innocent and destitute children. British Prison officials will not travel to Sri Lanka to monitor what he is doing in Sri Lanka. According to Buddhist disciplinary code a monk who has spent a jail sentence wearing prison uniform is not allowed to revert to his earlier position as a monk!
I think that this matter should be brought to notice of Child Protection Authorities in Sri Lanka. But he has very powerful political connections in Colombo. He has got enough money too. In Sri Lanka what is important is who you know!
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Raj / November 12, 2016
Sampath,
Thank you for highlighting this issue even though it’s not in context with the article in question. I would be surprised if this monk is de-robed at all. There will be enough rich Buddhists queuing up to support the ‘Ven.’ monk who has returned to his homeland after a ‘lifetime of service’ in London, as that’s how he will be promoted. Therefore, he should be at least named & shamed to prevent him continuing his despicable practice among the poor & the vulnerable.
This shows the corrupt political system in SL where cronies can get away even with murder. In this particular case, a lot of Sinhala Buddhists in UK were in denial & if I am not mistaken, the SL High Commission was instructed by MR to meet all the legal expenses. The High Commission has to look after its citizens but paying the legal costs with tax payers’ money in a criminal case is unprecedented. At the end of the day, the average citizens of SL get screwed by the politicians, one way or another, from duty free car permits to safeguarding cronies.
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kumaran / November 12, 2016
For sure, he must be knowing R.K!!
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Raj / November 12, 2016
Ravi K initially stated in public that he was going to abolish the parliamentary duty free car permit system but even before his first budget, he made a complete U turn & not only went back on his word but enhanced the value of the permit to $60,000. This guy has absolutely no shame, is stupid or thinks the people of SL have poor memories. Sad to say, RK, despite his affluent background, is just another yob among a set of uneducated & selfish politicians who have no self respect. Royal College certainly can’t be proud of him.
JR’s excuse when he introduced the permit scheme was because MPs need 4x4s to visit the remote villages in their electorates with no proper roads. I suppose he thought it was cheaper to provide the MPs with luxury SUVs instead of improving the roads which would benefit everybody. Maybe RK also has to visit remote areas to get a fist hand understanding of the problems of the poor villages. I wonder if this argument is still valid.
This, to my understanding, is the basis for Mr Kodithuwakku’s legal quest.
I hope Mr Kodithuwakku will continue his fight against this grossly unfair & expensive practice, & I am sure, he has the support of all right minded citizens of SL.
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Douglas / November 12, 2016
Next time elect a Party that pledges to abolish all the perks, including “Pensions” to Parliamentarians. There should not be any houses given to them in the capital city, excepting hostel accommodation when attending Parliament and as soon as the sittings are over all members must return to their respective constituency and be available to work with people. Every Member must be required to submit a Quarterly Progress Report on the work they did in their constituency and that must be a document available to the people. Unless strict “Discipline” and “Work Ethics” are established by Statute these bastards cannot be controlled and establish Good Governance. Now the PEOPLE must resolve to bear the hardships for the present and target 2020 to bring about that CHANGE. We have tolerated enough.
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mia cader / November 12, 2016
It is the voters to be blamed for voting these rotters to parliament
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Nimal / November 12, 2016
If This storey is true then it is truly disgusting.
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maalumiris / November 12, 2016
Where are the Yahapalana Water Boys who so loudly critique MR for his excesses ?
Missing In Action when it comes to Yahapalana ?
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Native Vedda / November 13, 2016
maalumiris
“Where are the Yahapalana Water Boys who so loudly critique MR for his excesses ?”
Can you give us the names of all the free loaders and their party affiliation?
Do you still believe only the outsiders are scheming to destroy this island?
By the way, why is the gang of 22 in the parliament maintaining a deafening silence on this matter?
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Upul / November 12, 2016
This is another classic example of “KIYANAKOTA EHEMAI, KARANAKOTA MEHEMAI”. Almost all the politicians are like this, in all the third world countries. This is the reason they come into politics. Please don’t think that they really want to help the people of the country.
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chairman, State Corporation / November 12, 2016
I have sid this a number of times!! DO AWAY WITH DUTY FREE VEHICLES FOR ALL. NOT EVEN THE PRESIDENT AND PRIME MINISTER.
I served in a senior position during the JRJ period from 1977 to 1985. As Chairman I was allowed a permit (for the Chairman, not as an individual) but THE CORPORATION I WAS IN CHARGE OF HAD TO PAY DUTY. No “duty free”. Duty Free vehicles were allowed by the British government ONLY to the Governor General as the Queen’s representative, not even to the P.M., Chief Justice, Speaker etc. This idiotic duty free was allowed somewhere in the mid ’90s by R.P (I think).
This MUST be done away with. Civil Society must rise-up.
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RaviK / November 12, 2016
This is my budget bonanza. I was looking for a much better model but this is the only one which was on offer. Maybe next time I will get a good one. In the meantime all the people can tighten their belts.
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thondamannay / November 12, 2016
Tighten your belt and I will tighten my SEAT BELT.
Ravi.K the finance minister a thick skin scum.
What is common to an educated Politicians like Ravi.K to that of a uneducated politicians? FRAUD
Disgusting yahapalanaya. Where is that Mr. Clean or Dirty?
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mahsen / November 12, 2016
This shows Ravi’s days are numbered the same way they did in 2001-2004 , They want to cash and run whatever they have in possession. They know there is no meaning being yahapalakaya when it comes to stealing public money. They hood wincked public and they know they will start loosing elections from next year. They will do more as Trump style happening all over the world.
Started from Egypt, UK, Philippines, USA, next year Germany. There cannot be exception to Sri Lanka.
Ravi ordered car in OCTOBER end knowing Trump style is going to hit the world.
God Bless Sri Lanka. ravi is the worst and most corrupted Finance Minister ever. He is also angry that Central bank and many banks are taken out of his ministry for no reason. This is the reason he prsent Holman Budgets.
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