Sri lanka: Govt. holds ladders to thieves — Marxists

( September 28, 2016, Colombo, Sri Lanka Guardian) The present ‘yahapalana’ government is one that taxes people, hold ladders to thieves and liquefy state institutions, it makes various statements to deceive people and throw sand at people’s eyes says the General Secretary of the JVP Tilvin Silva.

He made these observations at a press conference held at the head office of the JVP at Pelawatta yesterday (27th). The Member of the Central Committee of the JVP Western Provincial Councilor Attorney at Law Sunil Watagala was also present.

Mr. Tilvin Silva said, “The present government is lying to the people and is throwing sand at people’s eyes. The government, making statements to deceive people, is burdening the people with heavy taxes. 

Meanwhile, the government, to manipulate the Department of Inland Revenue, Customs etc that bring revenue to the country, is weakening Acts and regulations that are relevant to such institutions.

The government unjustly increased VAT to 15%. Ours is a country where very poor people are the majority. During the election period the government said the country’s economy would be developed so that people’s pockets would be filled. However, after coming to power the government is emptying people’s pockets to fill the pockets of ministers and government’s lackeys. The businessmen in the country took to the streets protesting against government’s VAT. We, of the JVP too took to the streets. More than half the population in our country is poor. They make their ends meet with relief such as ‘Samurdhi’. The daily income of 43% of the population is less than US$02. Taxing such people is very unfair.

Court to judge that he VAT system presented by the government was erroneous. Still for all the government is preparing to bring in a VAT amendment Act to Parliament again. People are unable to afford such taxes. However, the government comes out with false statements to deceive the people. Despite stating the VAT introduced for the health service was withdrawn due to protests by the people, what replaces it is an entire different thing. As the state health sector is weak patients go to the private sector to get their various tests done. Despite VAT is not levied for such out patient services, VAT is levied from patients who get services as inpatients in private hospitals. Hence, what the government says is a blatant lie. VAT is levied for the health sector as well.

At present the number of patients who seek services from private hospitals is going up. This is due to the failure of the state sector and an increase in the number of older generation. In 1990 the older population was 8.9% of the total population in the country. In 2000 it was 9.6%, in 2010 it was 12.2% and in 2014 it had risen to 13.4%. It is estimated that in 2026 the elderly population would increase to 18.9% of the total population. Hence, the need of the health services would be increasingly felt. However, there are no facilities in government hospitals nor is there any preparation to meet the demand. The number of heart, kidney, neuro patients is increasing. They have to undergo surgery. In government hospitals patients have to wait for months in waiting lists to get heart surgeries performed. However, brain surgeries cannot wait for months. As such, people, even with financial difficulties, go to private hospitals. Services of private hospitals are sought not only by super class capitalists. People from the middle class as well as downtrodden masses find money somehow or other to get services from private hospitals. We often see people collecting donations on the roads to get surgeries done for their loved ones. This government levies a 15% VAT even from those who go round eh country collecting donations to get surgeries done for their kith and kin.

Normally, a heart surgery costs Rs.6,98,000. Then Rs.1,04,000 has to be paid to the government as taxes. The government grabs Rs.100,000 from those who collect money for the surgeries. A brain surgery would cost about Rs. 1 million. Then the government would collect Rs.150,000 as taxes. A patient who gets a CT scan done in a private hospital as there are facilities in government hospitals will have to pay Rs.2500 as taxes. This is very unjustifiable. A government that collects hundreds of thousands of rupees from patients who have to pawn their assets to come out of dangers to their lives cannot be humane. The government that levies 17.5% income tax from private hospitals charges another tax from patients who get treatment from such hospitals. In many other countries the health services are tax free. However, the government in our country levies tax for the health services to add to its coffers. A portion of the money given from President’s fund for surgeries is taken back as taxes.

The taxation by the government is not fair. As such, the JVP would mediate totally to defeat the VAT levy. The government, instead of receiving an income from developing the economy to increase production, is levying taxes from patients who suffer from their ailments. This move of the government must be defeated.

The government, while picking pockets of the people, is carrying out unnecessary interference on the Inland Revenue Department and Sri Lanka Customs in order to control them and take them under the Minister. Instead of properly managing the institutions that collect tax incomes, they are being politicized to mess them up. This government moves according to the wishes of imperialist institutions. Last time when obtaining loans the IMF was promised that the financial sector would be opened, state institutions would be privatized and relief for the masses would be slashed. VAT is introduced at the behest of the IMF. The institutions such as Inland Revenue and Customs are weakened to satisfy imperialist bodies.

A cabinet decision has been taken to weaken the Inland Revenue Department. Accordingly, the collection of revenue would be given to a private company. Privatization is carried out on the pretext of making them efficient. When a private company is given to collect revenue they will have to be given a commission. The government that states thee is no money gives commissions to private companies. While giving a commission to companies the stalwarts of the government too get a share of the commissions.

Throughout the previous regime their associates were not taxed due to political interferences. Associates wee given tax relief. It is due to the state interferences in tax collection that income had gone down. When tax collection is given to a foreign company it would come to know about all tax payers in our country. A foreign company getting to know economic information in our country is a threat to security.

The existing Inland Revenue Act is to be refuted and two Acts to be introduced. The two acts to be introduced are the Tax Administration Act 2016 and Inland Revenue Act 2016. According to the existing Act the Commissioner is appointed by the cabinet. All other officials are appointed by the Public Service Commission. There are less political interferences. From Tax Administration Act 2016 the Minister of Finance gets the authority to appoint all officials. He could appoint his associates. The Minister of Finance in our country is a businessman. Giving one person the authority is not good governance. The slogan is ‘good governance’. However, practically the government acts against ‘good governance’. There is an attempt to get outsiders involved in Inland Revenue Department. There is also an attempt to recruit 1500 persons violating the regulations. The UNP is paving a way to provide jobs for its sympathizers. As SLFP in the ‘unity’ government holds power in the Port, CPC and SLTB, the UNP has a crisis in giving jobs to its sympathizers.

On the other hand a new act has been drafted to weaken Customs that brings revenue to the country. There is an attempt to reduce the powers Customs officers have. Fines for offenders are to be relaxed. 

Customs brings 57% of the country’s income. Customs brought Rs.503 billion in 2014 and Rs.719 billion in 2015. Customs’ duty is not only to collect taxes. It prevents illegal goods from coming in to the country and artefacts and things connected with bio diversity taken away from the country. Hence, the Customs Act should be a strong one. We have a strong Customs Act adopted in 1969. They are are attempting to amend this Act. The highest position in Customs is the Director General. He has five additional officers. 

According to the new Act six additional director generals are to be appointed and three of them are appointed by the cabinet. This would increase political interventions. The new Act gives eh Minister of Finance to release goods without any checking from Customs. Punishments for thieves have been relaxed. According to the existing act if false information is given to the Customs regarding good imported a fine of three times the value of the goods could be imposed when such an attempt is revealed. However, according to the new Act only 50% of the value of goods would be charged. This government supports and helps thieves. If the culprit admits the crime during Customs inspection the goods could be released without a fine but paying only the tax.

According to the law in our country if anyone is caught with 2 grams of heroin he or she could be sentenced to death. However, according to the proposed Act the maximum punishment for anyone caught with drugs, heroin, banned medicines, military weapons, bombs, missiles, swords, daggers is six months imprisonment. The maximum fine is Rs. 5 million. The government creates loopholes for thieves to wriggle out through the new Act.

The government, despite talking about good governance, keeps ladders for thieves. The government works according to western powers and creates loopholes for thieves to wriggle out. These moves of the government must be defeated. The JVP totally supports the struggle action begun by employees of Inland Revenue Department and Customs. Also, we will rally masses to carry out a massive agitation against the vicious moves of the government.”

Talking about the statement by the Chief Miniser for Northern Provincial Council C.V. Vigneswaran Mr. Tilvin Silva said it gives a stimulant to the communalists in the South and such revolting statements made at a time when All Sinhalese, Tamil and other people strive to achieve national unity should be condemned and all should repulse such statements. He said the views expressed by Vigneswaran are not that of the people in the North and the East.