Govt. heading for financial crisis: GL
Posted on June 1st, 2015

Courtesy The Daily Mirror

The government will run into a serious financial crisis as it has failed to give legal effect to the taxes proposed in the budget to raise revenue for the financial year under review, former External Affairs Minister G.L. Peiris said yesterday.

Addressing a meeting in Tangalle yesterday, Prof. Peiris said though the government proposed various taxes such as Super Gain Tax, Mansion Levy and all, none of them had been enacted in Parliament in the form of laws to give them legal effect.

Therefore, he said, none of these taxes would be valid.

“The budget is a fairy tale. The government cannot raise revenue now,” he said.

Commenting on the Treasury Bond issue, he said , for the first time, a person who had renounced loyalty to Sri Lanka, had placed his signature to the currency notes of Sri Lanka. He said this situation had arisen with the appointment of Arjuna Mahendran, a Singaporean, as the Central Bank Governor.

Prof. Peiris held Prime Minister Ranil Wickremesinghe responsible for this appointment, and said it warranted a no-confidence motion against the government. Also, he said the proposed electoral reforms should be enacted in the form of 20th Amendment through a majority government, and the present minority government should be replaced through a no-confidence motion.

Once that is done, he said, President Maitripala Sirisena could appoint someone commanding the majority support in Parliament as the Prime Minister. –

 

See more at: http://www.dailymirror.lk/74413/govt-heading-for-financial-crisis-gl#sthash.KxaGl3kf.dpuf

8 Responses to “Govt. heading for financial crisis: GL”

  1. NeelaMahaYoda Says:

    Prof. Peiris said though the government proposed various taxes such as Super Gain Tax, Mansion Levy and all, none of them had been enacted in Parliament in the form of laws to give them legal effect”.

    This is a tip of an iceberg.

    At the moment no one is paying corporate tax for the financial year 2014/2015 and Super Gain Tax pending new legislation. There is absolutely zero income for the government.

    Nobody has ever noticed the gravity of this except those executives working in the bank. At the moment everyone in Sri Lanka are waiting for change of government. There is no policy implementation at all and everything is stand still.

    Now the government is very reluctant to bring these bills into parliament to enact new taxes for the fear of opposition majority.And that is the main reason why UNP is asking for early general elections.

  2. Lorenzo Says:

    If what NMY says is true, that is a MASSIVE disaster facing SL.

    May be it is better for My3 voters to suffer enough so that they will not pick this UNP junk again.

  3. Christie Says:

    Emperor decides not the Governor Chandrika, Kankaani Ranil or the Coolie Sirisena.

  4. Metteyya_Brahmana Says:

    I don’t see how 6-7% GDP growth is sustained with all of the Chinese-funded infrastructure projects being shut down by Ranil and the UNP. The 1st Qtr GDP numbers come out in two weeks (June 14th), so we will see for the first time the adverse result of the new government’s anti-China policies on the Sri Lankan people.

  5. Lorenzo Says:

    A different view from finance minister.

    “Apr 25, 2015 (LBO) – Sri Lanka’s tax revenue has increased 23.8 percent in the first three months of this year against the same period last year, Finance Minister Ravi Karunanayake said.

    “The Inland Revenue Department has performed a significant task to increase the tax income. The people are convinced today that tax money does not pass on to corrupted persons.” Karunanayake emphasized.

    The tax revenue of the Excise Department has also risen to 9.5 billion rupees by March this year.

    It is a 123 percent increase against the 4.3 billion rupees reported in November last year.

    He was speaking at a certificate presentation ceremony of the Sri Lanka Tax Payers’ Association in Colombo recently.”

    http://www.lankabusinessonline.com/sri-lanka-tax-revenue-up-24-pct-in-first-quarter-2015-finance-minister/

  6. aravinda Says:

    If we have few more day light robberies like March 8th Central Bank Bond robbery, Sri Lanka will soon be in the same basket with Sudan, Somalia and Eritrea.

  7. Fran Diaz Says:

    Lorenzo,

    The news of tax revenue increased in the first three months is all bunkum. It is only on paper. The taxes increased were never implemented according to other reports. This is more than likely true. Any news coming from Ravi K. should be taken with a pinch of salt !!

  8. Lorenzo Says:

    Fran,

    1. For a fact I know many Tamils and Muslims have started to pay MORE of their due share of tax now since “their govt.” came to power.

    They were VERY RELUCTANT to pay tax when MR was in power.

    MOST businessmen are Tamils and Muslims!!!

    I know it is WRONG but this is the reality. MR govt. did nothing to use force to collect unpaid taxes from them.

    2. “The tax revenue of the Excise Department has also risen to 9.5 billion rupees by March this year.”

    Maru Sira set an example of drinking unlike MR. So people follow him and drink. That is why this is higher. MOST wine stores are owned by UNP thugs. They too pay taxes now to their UNP govt.

    3. For the election, the former govt. went SOFT on tax collection. That is another reason for LOW tax income in 2014.

    Anyway MORE TAX = MORE CORRUPTION.

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