Thursday, May 10, 2018

SC requested to re-list MPs vehicle abuse case

New tax regime arbitrary, unfair-lawyer


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Kodituwakku

By Shamindra Ferdinando- 

Attorney-at-law Nagananda Kodituwakku, yesterday alleged, that legitimate recipients of duty free vehicle permits could cash in on an arbitrary taxation scheme recently imposed by the government.

Kodituwakku said that the value of duty free permits available tothe sitting members of parliament and various professionals had gone up sharply due to the imposition of the new system.

The former top Customs officer took up the issue with Finance Minister Mangala Samaraweera recently.

Kodituwakku pointed out that the tax scheme had been transformed from transaction value into a system based on engine capacity.

Kodituwakku said that he gave up plans to import Lexus hybrid car (2017 model) due to unprecedented increase in vehicle tax.

Kodituwakku said that he paid taxes amounting to Rs. 2,008,105.00 in 2014 when he imported 2013 model of the same car. Kodituwakku said that when he had inquired from Customs the levy for the identical car of 2017 model, he was told in accordance with the new tax the amount would be Rs.14,384,000.00.

Pointing out that the tax paid to a particular type of vehicle had been increased by more than seven times, Kodituwakku alleged that taxpayers were unduly charged.

Responding to another query, Kodituwakku said that the vehicle tax had been imposed under Section 10 of the Customs Ordinance. The parliament had empowered the Finance Minister to impose taxes on imported goods in line with Section 10 of the Customs Ordinance, the attorney-at-law said. The public litigation activist emphasized that the new vehicle tax regime was not based on the recently enacted Inland Revenue Act (IRA) No. 24 of 2017 that came into operation on April 1, 2018.

Alleging that the current tax policy violated GATT (General Agreement of Tariff and Trade), Kodituwakku said that members of political parties represented in parliament had been given massive tax exemptions over Rs. 30 mn each at the expense of the Treasury.

Kodituwakku said that he didn’t receive a response from Minister Samaraweera and General Secretariat, WTO, to his recent letter. Kodituwakku said that law-abiding citizens had been deprived of an opportunity to acquire a vehicle whereas politicians and selected categories of professionals were given privilege status. "The main problem is not the issuance of duty free permits but the recipients allowed transferring vehicles imported on them," Kodituwakku said.

Kodituwakku said that he moved the Supreme Court in the wake of the CIABOC (Commission to Investigate Allegations of Bribery or Corruption) failure to inquire into his complaint in respect some members of parliament transferring their super luxury vehicles.

He has recently requested the Chief Justice to re-list the case (SC/Writs/7/2016) filed against members of parliament who had received unfair monetary gains at the expense of the General Treasury. Kodituwakku has estimated the losses suffered by the government as a result of duty free permits issued to those elected at August general election and also appointed on the National List at Rs 7 bn, according to submissions made to court.

According to the attorney-at-law the case was taken out of the list as Supreme Court judges weren’t willing to hear the case.

Kodituwakku has agreed, in writing to de-list two judicial corruption cases (SC/Writs/3/2016 and SC/Writs/3/2017) that were to be taken up on March 26, 2018 while requesting the listing of two cases, including the one on vehicle abuse.

Kodituwakku has sought an opportunity to support the case on June 11, 12 or 13 before a five member judge sans two judges made respondents in two judicial corruption cases.

Kodituwakku, in his submissions to the CJ pointed out that a matter that had been initiated in the public interest was yet to be listed for support.

He told The Island that in his letter to Minister Samaraweera he urged the government to introduce a reasonable tax structure. The lawyer said that those members of parliament battling the government over corruption and other issues were conveniently silent on the issue because they, too, benefited by the special scheme for politicians.