(Lanka-e-News- 25.June.2016, 11.30PM) The people who are expecting the government to allocate 6 % towards education , provide free relief to the victims of disasters , free higher education , free health facilities etc. to them have opposed the tax levies imposed by the government .This has created a paradoxical situation.
The government can only provide the relief the people are expecting only by the taxes collected from the people, for the government is not a company.
In the world ,countries where the governments provide most relief to the people collect huge taxes too. For instance in Britain, a family that is earning about sterling pounds 1500.00 , apart from the other taxes, pay about pounds 200.00 as municipal taxes. That is ,of the income about one seventh of the earning is spent on Municipal taxes.
The Municipal council also carries out its tasks for those families commensurate with the taxes collected in those countries. Among their many services include providing a house in case the family is deprived of a house and looking after the elderly by the children. When all the taxes are totaled , it is about one fourth of the income of the monthly earning of an individual .These are taxes that must be paid even by an individual who is not permanently employed and in part time employment. The taxes businessmen have to pay are also very heavy.
There isn’t a big gap between the net profit reaped by a small businessman after payment of all taxes and levies , and the salary that finally reaches the hands of a professional .In the same way the reliefs granted by the government to the two groups too are not much different. In some European countries , the taxes levied is about 40 % of the income of an individual. However in those countries the relief granted to the citizens are also proportionate.
The government which collects huge taxes during the period of earning of the citizen , however when he/she reaches the stage the citizen cannot earn, the government takes over the entire burden of the citizen.
In Sri Lanka it is different . Though the citizen expects all the relief from the government he /she evades the tax payments, and even does not pay five cents as taxes. He /she does not have the thought he /she is a citizen of this country in the same way as the government thinks of them as citizens . It is unfortunate the government has not acted in a manner that could inspire that feeling among the citizens.
When ministers get down vehicles worth many millions and high rung officer of the government spends Rs. 1.2 million on his dress at State expense ; and when ministers secure tenders worth billions to themselves selfishly to the detriment of the country , naturally , the people will not develop the feeling of fondness for the country nor will they be inclined to think they are citizens of the country . Having lost faith in the rascals and scoundrels , the citizen evades tax payment.
This creates a vicious cycle. When taxes are not duly paid , what government does is imposes taxes on utility goods and services . VAT is such a tax. If the people are duly paying the taxes , the VAT levy will decrease. On the other hand if the people do not pay the taxes duly , the VAT levy shoots up.
In Sri Lanka a majority that pay taxes are businesses registered as companies , and not proprietorships (single owner) . The revenue department does not chase after the proprietorships either. There are a large number of businessmen in SL who are carrying on proprietorship businesses. Some of them not only do not pay the other taxes but even cheat on municipal taxes.
The VAT levy is not imposed one following the other , it is a once and for all levy on a commodity . When that is the case , every importer or producer , wholesaler , retailer and proprietor must register to make the VAT payment .
There is opposition mounting across the whole Island against the sudden introduction of the VAT levy by the present government .Usually in any country when a tax increase is to be introduced ,at least the people must be notified some months prior . Huge publicity should be given via debates and media discussions. Sadly ,the good governance government did not take any of these measures when it was introducing this VAT levy recently. While talking like ‘chandiyas’ (thugs) the VAT was introduced. With the present good governance government strengthening Democracy in the country and the growing freedom thereby , the opposition to this increase in VAT levy also grew .
On the 23 rd , traders in Matara district closed shops and business establishments in protest against the VAT levy increase. In the Town itself , about 95 % of the business places were closed. The pavement hawkers too were not to be seen. This protest was not confined to the Town alone, it was staged within the city and village limits in all districts of Matara .A majority of shops in populated areas in Matara , Dickwella , Gandara, Devinuwara, Akuressa, Weligama ,Kamburupitiya, and Nihagoda were also closed.
This protest was staged by Matara district trade associations collective , Matara trade and commerce association , and Board of Commerce jointly .They went in a procession demonstrating their opposition from Matara Uyanwatte ground to the Matara central bus stand .
The video footage of Indunil Kelum Jayaweera covering Matara demonstrations is hereunder
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by (2016-06-26 01:41:07)
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What is stated here is the gospel truth. Few years after independent we never saw yahapalneya in Sri Lanka. Bunch of rogues took the whips and it is continued still by their offspring and new rogues. In the future too their offspring (who are trainees now) and other new rogues will take the whip. How can you expect our citizens to be honest and think like citizens of other progressive countries?
-- by Farook Hamid on 2016-06-26