|
|
 |
 |
 |
| Saturday, 9 October 2004 |
 |
|
 |
Politics | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
| Govt boosts investor confidence by repealing Tax Amnesty Bill by Shirajiv Sirimane The government has boosted investor confidence and has taken another step to establish the rule of law in the country by repealing the Tax Amnesty Bill introduced by the previous government, said PERC Chairman and Financial Analyst Nihal Sri Amarasekera. Many foreign investors had second thoughts in investing in Sri Lanka since they felt there was no level playing field for them. The foreign investors after establishing themselves in Sri Lanka, pay customs duty and other taxes. However they suddenly find out that their local competitors were given unfair tax concessions by way of the tax amnesty, he told the Daily News. Under the previous law, those who have committed offences, including smuggling drugs, firearms, counterfeit currency, funding terrorism and getting involved in terrorist activities, have been given complete immunity, indemnity and pardon under the guise of an "Income Tax Amnesty", Amarasekera said. This is against all norms in a civilised society and is against the Rule of Law. But the UNF Government, not only granted pardon for such offenders but also encouraged the growth of such offenders and the perpetration of such frauds in the future, which would have led the country to a Banana Republic, he said. "This is why some foreign investors prefer to invest in countries like Singapore and Malaysia where the laws are very tough and tax and customs offenders are severely penalised," Amarasekera said. He said the previous tax amnesty benefited only a handful who were mainly based in the Western Province. "However under the new legislature all citizens will benefit," he said. Amarasekera said the Bill to squash the tax amnesty was endorsed by the Supreme Court before it was passed in Parliament. "Only the United National Front objected to this and they even went to the extent of calling for explanations from Members of Parliament from their party who were absent in Parliament when this was debated," he said. Amarasekera said every MP has to take an oath that they would safe-guard the country's interest when they become an MP. He said the MPs who voted against the Bill have violated their oath and has also insulted the Supreme Court which gave the green light to repeal this act. He demanded as to what action the Speaker intends to take on these MPs. Amerasekera said he is seeking legal advise on this issue. "The laws introduced to penalise Sepala Ekanayake involved in hijacking a plane is one. Another is the repel of administration of Justice of Law (Act No. 19) imposed by former President J. R. Jayewardene in 1977," he said. Under the infamous Tax Amnesty Law, "Declarations" had to be made only to the Commissioner General of Inland Revenue, who gave a "Receipt" as an acknowledgement of a Declaration, and the other State Authorities were expected to act purely on the production of such "Receipt". With the new Inland Revenue (Regulation of Amnesty) Act, all 51,805 Declarations can be examined by the Commissioner General of Inland Revenue, and he or his authorised officer can call for any further particulars as may be necessary from the Declarants. Indirect and direct Taxes collectable by the Government as at December 31, 2002 had amounted to Rs. 68.7 billion. Customs Duties defaulted to be collected is reckoned to have been Rs. 120 billion. Together with fines imposed by the Controller of Exchange and the Excise Commissioner, the total dues or public revenue payable to the Government or recoverable by the Government as at December 31, 2002 was over Rs. 200 billion. The new Bill "Inland Revenue (Regulation of Amnesty)" presented to Parliament by the PA Government repeals the infamous Tax Amnesty Law of the UNF Government completely, and grants only an "Income Tax Amnesty" to those Declarants, who had disclosed hitherto undisclosed incomes or assets, under the Inland Revenue Act No. 38 of 2000. Meanwhile, Secretary CEO of the Ceylon National Chamber of Industries (CNCI) Uplai S. Samarasinghe said over 85 per cent of government revenue is collected by way of taxes. "Tax collection was very low and a government should give amnesties from time to time," he said. However this amnesty was mostly enjoyed by big fish who enjoyed all the benefits, he said. Today there is a shortage of funds in the Treasury because such a large amount of public revenue of Rs. 200 billion due to the Government had been written-off. Even if 10 per cent is collected immediately, that would amount to Rs. 20 billion, with which immediate relief could be given to cushion the rising cost of living due to the increase of oil prices, to help the poor masses of the country, grant fertiliser subsidies to farmers, and grant relief to the poor affected by the severe drought. |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
