LEN - www.lankaenews.com | Will we elect Anura as President, who intends to remove MPs' benefits worth over 15 billion rupees a year?

Will we elect Anura as President, who intends to remove MPs' benefits worth over 15 billion rupees a year?

-Writes Shantha Jayarathna

(Lanka-e-News -17.Sep.2024, 11.00 pm) Ranil Wickremesinghe and Sajith Premadasa cannot say certain things from their platforms or policies that only Anura Kumara Dissanayake can. One of those points is the removal of MPs' privileges.

According to Anura’s election manifesto (on page 194), one of the first actions of his new government would be to eliminate the undue privileges enjoyed by MPs, Presidents (including retired ones), and Presidential widows. Among these privileges is the tax-free vehicle permit MPs receive once every five years. Official residences, security personnel, pensions, fuel allowances, and other expenses would also be halted. This could save over 15 billion rupees annually.

Abolishing Vehicle Permits - Yearly Savings of 7 Billion Rupees:

Ranil or Sajith would never mention removing duty-free vehicle permits. If they did, many MPs would not support them, and even those who currently do would leave. Before the election announcement, 116 MPs in the current parliament had applied for duty-free vehicle permits.

Generally, the tax on imported vehicles is three times the vehicle's value. Until 2016, MPs had to pay a minimal tax when clearing their vehicles from the port. However, during the Yahapalana government, Finance Minister Ravi Karunanayake (in 2016) completely abolished this tax, allowing MPs to import any vehicle of their choice at any price without paying any taxes.

Currently, an ordinary citizen importing a vehicle has to pay a tax three times the vehicle's value (depending on the engine capacity), while an MP pays only 1,750 rupees (Customs Facilitation Fee), which is merely the cost of entering the vehicle's details into the computer system.

For each imported vehicle, the government loses between 30 to 45 million rupees in taxes. For more details, refer to this article. [Link to source](https://numbers.lk/news/duty-free-vehicle-permits-for-mps). Many MPs sell these permits to vehicle dealers for prices as high as 20 million rupees. Due to the system introduced by Ranil Wickremesinghe, Prime Minister of the Yahapalana government, and Finance Minister Ravi Karunanayake, the government loses between 7,000 and 10,000 million rupees annually in taxes. Since 2017, the total amount lost by the government due to these tax-free vehicle imports is approximately 53,867 million rupees. For more, read [this article] (https://www.dailymirror.lk/print/plus/Vehicle-import-companies-ministers-deny-Rs-53-867-Mn-worth-taxes-to-Govt/352-291138).

Cabinet Limitation - Yearly Savings of 700 Million Rupees:

Ranil and Sajith cannot promise to limit their cabinets to 25 members. If they did, many would abandon them. The government spends 2,590 million rupees annually to maintain the cabinet. It costs around 35 million rupees annually to maintain a Cabinet Minister and 34.8 million rupees to maintain a State Minister, covering only salaries and allowances. [Link to source](https://publicfinance.lk/en/topics/ministers-and-state-ministers-cost-of-offices-are-similar-1620729803).

Reducing Presidential Expenses - Yearly Savings of 3,960 Million Rupees:

Ranil Wickremesinghe has allocated 6,601 million rupees (recurrent and capital) in the 2024 budget for presidential expenses. In March 2024, another 200 million rupees was allocated for foreign travel expenses. By June of the previous year, Ranil Wickremesinghe had obtained approval from parliament for an additional 8,750 million rupees. The total comes to 15,551 million rupees. A future President Anura, elected on September 22, will significantly cut these expenses by a large percentage. If he slashes 60% of the 2024 budget for presidential expenses (6,601 million rupees), 3,960 million rupees could be saved. [Link to source](https://www.treasury.gov.lk/api/file/2790e3f1-9df3-4de7-985d-186cc97df2a3).

Cutting MPs’ Pensions and W&OP Benefits - Yearly Savings of 304 Million Rupees:

According to parliamentary account reports, the government spends at least 16 million rupees per month to maintain 255 retired MPs. By reducing these, 194 million rupees could be saved annually. Additionally, in February, 9 million rupees was spent on widows' and orphans' pensions for 168 MPs. This costs around 110 million rupees annually.

Reducing Fuel Allowances - Yearly Savings of 500 Million Rupees:

Recently, MPs' fuel allowances were increased to 200,000 rupees, based on the distance they have to travel. Only three MPs from the National People’s Power (NPP) rejected this increase. MPs residing in areas like Jaffna receive 200,000 rupees, while those living in Colombo receive over 100,000 rupees. A Gampaha district MP receives 355 liters of fuel, and a Jaffna district MP claims even more. A reduction in these allowances could save around 500 million rupees annually. [Link to source](https://www.parliament.lk/si/members-of-parliament/allowances-and-benefits).

Cutting Attendance, Committee, and Office Allowances - Yearly Savings of 500 Million Rupees:

MPs receive 2,500 rupees per day for attending parliament. Additionally, committee members receive 2,500 rupees for attending meetings held outside of parliamentary sessions. MPs also receive a monthly office maintenance allowance of 100,000 rupees. The cost of maintaining the 225 MPs is at least 500 million rupees annually. [Link to source](https://www.dailymirror.lk/print/opinion/Lawmakers-paying-36-as-tax-and-their-salaries-exposed/231-257000).

Limiting Personal Staff - Yearly Savings of 200 Million Rupees:

A minister can have up to 15 personal staff members, for whom salaries, housing, vehicles, and fuel allowances are provided, often hiring family members. This costs the government significantly. For more details, visit [this link] (https://www.parliament.lk/si/members-of-parliament/allowances-and-benefits).

Currently, public funds totaling 2.841 million rupees are spent annually on parliament activities, including 50,000 rupees per month for phone allowances and 350,000 rupees worth of free postage per year. This number has significantly increased in recent years. [Link to source](https://publicfinance.lk/en/topics/The-Money-Spent-on-Parliament:-Where-does-it-go-1620669685).

It’s unnecessary to remind anyone that the reason Sri Lanka is on the verge of bankruptcy is due to these parasitic politicians. Some have been living off public funds for more than three decades, feeding their families and relatives while exploiting the public’s money. Only a few days remain to put an end to this dark era.

It is now essential to elect Anura Kumara Dissanayake and the National People’s Power (NPP) to fulfill the aspirations of the people. Let’s end this corrupt political culture on September 21. Let’s send these parasitic politicians home. Let’s enforce the law against those corrupt politicians who have amassed illegal wealth. Only Anura Kumara Dissanayake can bring about this change.