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Government to withdraw SGST exploring other tax options 

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Thegovernment is withdrawing the special Goods and Services Tax (GST) bill aimed at simplifying the existing tax structure and consolidates several taxes assingle tax following the Supreme Court’s decision of requiring a two-thirdsmajority and referendum to enact it as a law, 

Finance Ministry sources said.Under this circumstance the Finance Ministry has to explore other revenue measures if it has to replace the GST with a tax that would generate the same revenue.Such taxes would be fairer to consumers and small businesses and it would not be a headache for small businesses, and would harmonize tax policies.

Essentially,the alternatives to the GST are as follows: (1) introduce a business transfer tax; (2) introduce a tax on consumption (here defined as income less savings);(3) simplify the GST (eliminate some exemptions; increase the income threshold above which businesses must register) and harmonize it with the provincial sales taxes; (4) replace the GST with a more broadly-based retail sales tax;

 Even to introduce even one of these taxations needs the introduction of a new tax bill which will have to be enacted in parliament following the supreme court determination on its constitutionality.

With  regard to the previous Special GST, the Supreme Court observed that several clauses of the bill are inconsistent with some of the articles of the country’s constitution.

The SpecialGST consolidates several taxes on liquor, cigarettes, telecommunications,betting and gaming and vehicles. 

The Attorney General had cleared the draft law.This legal issue has prompted the Finance Ministry to find an option to re-introduce theSGST and one of the options is to withdraw the tax and allow the previous taxation system with some revisions to relevant taxes to continue, said JointSecretary of the Inland Revenue Service Executive officers’ Association H. A.L. Udayasiri.

The ministry has convened several special meetings to arrive at a decision and it will also seek the legal opinion of the Attorney General on possible options tore-introduce SGST and devising a new bill with necessary amendments.

The Ministryhas made all arrangements to set up a separate revenue collection unit at theTreasury and install the computer system to collect SGST online, he said adding that it has been planned to collect additional revenue of Rs. 50 billion from the new tax by law and changes to the Value Added Tax.

Welcomingthe Supreme Court order, Mr. Udayasiri said that this GST taxation is against the established system and procedure of revenue collection in Sri Lanka.

He noted that the TaxDepartment is responsible for the collection of 54 per cent of total revenue collection in Sri Lanka and taking over its responsibilities and functions oneby one will create a dangerous precedent 

Several appointments of foreign ambassadors to Sri Lanka made

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01 – The United States of America with the concurrence of the Government of Sri Lanka has appointed Ms. Julie J. Chung as the Ambassador Extraordinary and Plenipotentiary of the United States of America to Sri Lanka based in Colombo. She has presented credentials to H.E. Gotabaya Rajapaksa, President of Sri Lanka on 25 February 2022 at 4.00 p.m. at the President’s House, Colombo 01.

02 – The United Arab Emirates with the concurrence of the Government of Sri Lanka has appointed Mr. Khaled Nasser AlAmeri as the Ambassador Extraordinary and Plenipotentiary of the United Arab Emirates to Sri Lanka based in Colombo. He has presented credentials to H.E. Gotabaya Rajapaksa, President of Sri Lanka on 25 February 2022 at 4.00 p.m. at the President’s House, Colombo 01.

Foreign Ministry
Colombo
25 February, 2022

Strengthening Economic relations the focus of several meetings in Paris

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Foreign Minister Prof. G.L Peiris met with Minister Delegate for Trade and Economic Attractiveness Franck Reister at the Foreign Ministry in Paris to discuss French support for the expansion of economic relations with Sri Lanka in a variety of sectors. A Memorandum of Understanding was signed between the two Ministers at the conclusion of their discussion.

The Foreign Minister attended several meetings at the Chamber of Commerce of France. He met with Counsellor Bernard Quinet and Head of International Business Networks Estelle Gillot at the Chamber of Commerce. The main focus of discussion was networking arrangements between French and Sri Lankan companies and French expertise for educational programmes in entrepreneurship, business management and related subjects.

Minister Prof. Peiris held discussions with Francois Corbin of MEDEF International, the largest association of companies in France. Among representatives of the corporate sector he met in Paris were Secretary General of the company M21 Life Sciences Christian Leroux and Vice President of Marketing Strategy Thales DIS Jean-Claude Perrin.

Foreign Ministry

Colombo

27 February, 2022

50 per cent of passenger buses removed from operations amid fuel crisis

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Passenger bus operations will have to be limited from Monday (28) due to the shortage of diesel, revealed the Private Bus Owners Association.

Accordingly, 50 per cent of passenger buses will be removed from operations, the Union concluded.

As of now, there is a severe shortage of diesel in the country affecting public transportation.

MIAP

A five hour power cut tomorrow

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A power cut of over 04 hours and 40 minutes will occur tomorrow, said the Public Utilities Commission of Sri Lanka (PUCSL).

The manner in which these power cuts occur has also been publicised by the PUCSL, stating that a power cut of 05 hours and 15 minutes will occur to areas belonging to zones P,Q,R,S,T,U,V and W, cutting power for 02 hours and 45 minutes between 08.30 am and 04.45 pm and cutting power for 02 hours and 30 minutes between 04.45 pm and 09.45 pm.

Meanwhile, a power cut of 04 hours and 40 minutes will occur to areas belonging to zones A,B and C, cutting power for 02 hours and 40 minutes between 08.30 am and 04.30 pm and cutting power for 02 hours between 04.30 pm and 10.30 pm, the PUCSL added.

MIAP

I would have never left the country if I was informed on an attack – Maithri

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Former President Maithripala Sirisena has denied allegations that he went abroad for medical treatment despite receiving information that a terrorist attack would take place on Easter Sunday. The former president says he would not have left the country for any reason if the intelligence or security forces had informed him of such an attack.

Speaking at a Sunday service at the Nirmali Church in Polonnaruwa, Maithripala Sirisena said he had not received any information about the Easter attack while receiving treatment at a hospital in Singapore. He also states that he can swear it on the holy cross.

The former president further said that he would have instructed the security forces to enforce the curfew and taken necessary action if he was informed that the security forces were under attack while he was in Singapore.

The salary of the President is only Rs. 90,000. Nurses get more than that – Murutthettuwe Ananda Thero

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The salary of the President of the country is only 90,000 rupees and in comparison with that the nursing service gets more facilities says the Chancellor of the University of Colombo Ven. Murutthettuwe Ananda Thero.

“This is not a job, this is a profession. Maybe giving you some allowance or salary for the service you do is a different matter. But we are committed to doing a good service. The salary of the President is 90,000 rupees. When we make this comparison, today we have more facilities. Our side also needs to be a little better when we get more facilities. Despite these shortcomings, if we come to our Prime Minister and our current President as much as possible and remind them, we will never say no.”

Ven. Murutthettuwe Ananda Thera said this addressing a function held at Temple Trees yesterday (26) to dedicate 153 new nurses to the service of the Nightingale Pledge.

Basil to leave for US, ready for IMF talks

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Finance Minister Basil Rajapaksa is set to visit the United States on an official tour this April, in the objective of holding discussions with international bodies to solve the economic crisis befallen Sri Lanka.

Minister Rajapaksa is expected to hold discussions with the heads of the International Monetary Fund (IMF) and the heads of the World Bank. These talks are believed to be held in Washington.

Initial discussions are already underway and are successfully being carried out, reports said.

Should these talks success, a chances are high that Sri Lanka will receive a relief package in order to solve the prevailing economic crisis.

MIAP

Hydroelectricity only for two more weeks – reservoirs won’t be full until May

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Power cuts are reportedly have to be carried out until the reservoirs used for hydroelectricity are sufficient filled. The power outages, therefore, are likely to continue for at least another three months, experts in the field warned.

The areas in which these reservoirs are located will not receive sufficient rainfall until the end of May, despite the intermittent showers before the month, revealed the Meteorological Department.

The water levels in the reservoirs used for power generation can only be used for another two weeks, and chances are high that the hydroelectricity generation may be disrupted if there are now showers.

The above circumstances appear in the midst of an escalating fuel crisis, further endangering the process of generating power in the future. Experts also warn that the existing power cuts are likely to be extend by a few more hours, should the crises continue.

MIAP

President puts his highest effort into solving problems. Opposition does nothing but complaining (VIDEO)

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State Minister Shasheendra Rajapaksa speaking to a function held yesterday (26) stated that the Opposition is picturing an image of a commodity shortage in the country and proposes no practical solution to solve the economic crisis, but the President is putting his highest effort into solving problems.

“Bearing all the trouble, President Gotabaya Rajapaksa is putting great effort to manage the country well. As the efforts are being put, the Opposition sometimes goes on saying that the ‘President failed’, ‘no fuel, power and gas in the country’ and is picturing an image of a commodity shortage in the country. But none of them are providing a recommending a proposal to solve the economic crisis. This is not something our country suffers from alone, for every country in the world is facing these economic crises.

As Sri Lanka, we too had to face this at a time when businesses, and all the sectors that can locate funds and generate revenue to the public sector have come to a standstill. However, His Excellency the President, the Prime Minister and the Finance Minister have never taken any action to make up for the lack of development activities at the district level and at the village level,” he said.