The New Income Taxation proposals

Predating and Lowering the Taxable margin will strangulate further, the low- & without steady income group, either directly or indirectly already suffering of ran-away inflation, which cannot be arrested by predating the Taxation, and lowering the tax margin; that will help only the tax-evaders in big way, thus Increase the taxable margin to 300,000, and impose rigid guidelines to implement the taxing efficiently. Considering the Nation’s economic status, the Foreign Investors shall also be contributors towards the recovery of national economy at-least until the recovery, cannot be allowed to enjoy absolute Tax Holiday, regardless of period margin. All foreign investors (FIS) should be brought under the minimal taxation criteria until the nation attain the recovering status, that is reassess -able annually and appropriately all FIS be assessed for honouring the National Policy for Foreign Investors, such as employing locals etc. regularly. All these should be done not with arrogance, like that is shown to the local population, but with concomitant consultation with all FIS brought under one very firm forum for equality of implementation for all Foreign Investors irrespective of their countries of origin.  

 
New Taxing proposals and IMF (International Monitory Fund)

President Ranil Wickremasinghe in a state-wise response two days ago, to above inevitable demand -under the heading of "The New Income Taxation"- stated that he wanted to set the margin of taxable income at Two hundred thousand Sri Lankan rupees, but IMF insisted it to be from One hundred Thousand.

Before I venture into prove that the above statement is an utter lie, I would like to raise a question - who is ruling, this Nation of Democratic Socialistic Republic of Sri Lanka, Is it Executive President and the Parliament or the IMF?

We don't need an executive president of a nation to dance to every aspect of IMF criteria to obtain a credit line, which is loan itself, since the IMF officials does not know exactly the suffering situation of the ordinary people within Sri Lanka; the president himself and other members representing people of Sri Lanka didn't have the courage to explain to the IMF officials, that the sky rocketed inflation since of February 2022-
( if not early as 2021) the one hundred thousand rupees value has recessed to the value Rs.50,000.00 (fifty thousand only) as against 2021 value, and to refuse such a monopolizing demand of IMF in particularly while the IMF itself  has revealed that the inflation rate in Sri Lanka is over100% if at all IMF had laid such a request. IMF never ventures into another nation's unknown internal economic territory, such as renumeration of local employment and to set a taxation margin of an Independent Sovereign State, whatever the status qua of that nation. Therefore, the Ranil Wickremasinghe's Statement is a blatant lie, to coverup the taxation and predating that are laid without considering the recession value of the currency due to sky rocketed inflation and how such a low taxation margin will affect further the population already under tremendous pressure, but with   arrogance of somewhat vengeance against suffering and struggling public.
Those who threaten the already suffering people by similar to sooth sayings, as such if otherwise dangerous situation will emanate - are fit to be only in the terrorizing category, not governing a nation of that carries Sovereignty lays with its own population.

With regard to Sri Lanka’s turmoil IMF has laid some guide lines or principles in order to recover from it totally, rather than as a precondition for temporary credit line aid, but you all as arrogant rulers have conveniently interpreted as of conditions, in order to sustain same old, 74-year habits towards disaster; you all are determined to detrimentally refrain implement those are towards collective reduction of Government Expenditures – which is as well become source of income for government coffers. Actually, we don’t need IMF to tell this, if you all are thinking patriotically, the ways and mean of Collective Action Plan towards Government Expenditures Reduction (CAPtGER) and saving colossal amount to the coffers would have emancipated from you all itself, all but which have been enlisted again and again in many media, including my Blogger on the 8^th May 2022 Regression to Bankruptcy by System Politicization.

The CAPtGER should be a permanent feature of a responsible government and should be included in the forthcoming budget proposals, beginning from the cabinet itself, which should be strictly restricted to 30 members, including maximum of 10 state ministers, as efficiency of state affairs and institutions never depends number of people but definitely on individual performance and attitudes. Therefore, the cabinet itself should be exemplary of cascading and broadcasting the efficiency to all the State Institutions under its’ purview. When cabinet members show sings of inclination for illegal accumulation of wealth, it cascades down to the officials with rapidity and everything goes berserk out of control as far as accountability and administration are concerned.

CAPtGER cannot be a deterrent proposal because of it has been proposed by IMF, but many countries are practicing effectively and recommended by many professionals, which unfortunately is not the case from Sri Lankan politicians who are unabatedly seeking more and more privileges, despite majority of civilians undergoing awful  difficulties in providing the all three meals a day to all family members satisfactorily, it is horrendous to learn that either of the above two consumptions have to be sacrificed, for satisfying the youngers’ meals within a family.  Hence the main motive of new proposal to lower the taxable margin, to fivefold down only to sustain the huge privileges of ministers if not for further increasing enjoyments, increasingly pressurizing the government coffers to divert the funds, at the expense ordinary people. This is a huge violation of fundamental rights of the electors of the parliament members.   

Another matter of concern is inconsistent implementation import bans and restrictions  that has been laid said to be for searching funds for importation of essential commodities, which take place in favour of either the politician themselves or their cronies, reflecting again that the governing members have no any concern whatsoever towards the general public. Before arrogantly lower the taxable margin, the house has to be put in order that is what is demanded very justifiably.

While the rulers said to be in search of foreign exchange, importation of luxury cars and fancy items, gone on to spend as higher as fivefold foreign exchange than to importing essential food items which accounts for around 500 million dollars, within last eight months of period, according to a Central Bank report.  This is all at the background of exponent price soaring of essential food items even an earner of little more than Rs.100,000/= a month has to think twice, never in the range for majority. The chief of Department of Food as well complaints of about not receiving enough funds from, Central Bank to at least to maintain stock at the recommended level.

The jinx of mismanaged fiscal system, further carried into the releasing of funds for tankers carrying fuel and crude oil, in which delaying has become a naughty habit of “generously” prepared to pay penalty for waiting offshore, in many millions in dollars while disparaging for foreign exchange shortage.  

Why cannot the authorities pay attention to this utter waste as penalty for waiting in the ocean and manage so that to save that amount to be used to avert the medicinal scarcity prevailing – this is what I referred to as the attitude of the officials not prepared to respond to the deepened cash shortage – now sum up this scenario with overriding the import restrictions laid to save foreign exchange. When the top is in inconsistent practice, down and under as well goes carefree of approach.

We are dutifully bound to analyze the reasons behind, prolonging notorious habit of making the inward ships and oil tankers to wait weeks and months before unloading while delay penalty accumulates to a colossal amount, and following reasons can be setout

1.      The top and the down under processing the fiscal release are back-paid some percentage of the total penalty allowed to accumulate, this considering the fact that luxury car importation alone during the last 8 moths has been allowed a staggering 1700 million dollars, without any delay

2.      Fiscal management system is overstaffed, and that causes documents pertaining to cash release are pushed table to table either deliberately or unintentionally

3.      Even a digitalized system can delay the processing if it is overstaffed deliberately and those staff are not properly coordinated towards the objective saving foreign exchange.

Do the new tax payers drag into tax system for these kind of conceited utter waste by system delay?    

Disparaging as shortage of foreign exchange alone for essential commodities and fuel, but releasing funds nearly 400 million dollars easily for luxury cosmetics over the last eight months period, only indicates of that the authorities are scheming for taxation system covering broader income group.  The authorities imagined that the events that is unrolled deliberately would be vindicative enough of dragging the middle-income group of just over (Rs100,000.00) into taxation, but self-importantly failed to understand that such a system will tender the middle-income group into the poor group rapidly, and the economic cascade flow downwards to further below groups due to the high inflation rate prevailing. CAPtGER should include elimination of fraud and corruption as well which is mainly responsible for economic devastation unfolded. Through siphoning, money laundering and demanding commission from the projects and the project financers, the project outcome is rendered weak and unreliable, which is otherwise only become reliable for public benefit for long period. It is worth pointing out here, any incentives towards self-reliable income generation to public, an effective way of economic recovery overall, but if the government fail to supply fuel and electricity steadily, that project as well bound crash and further pressure on civilian life.    

Therefore, it is concluded that if Collective Action Plan towards Government Expenditures Reduction (CAPtGER) is very strictly, implemented government wouldn’t have needed the officiously proposed lowering the taxable margin, - hear the government has arrogantly opted the easy way out – further pressurizing the public who are already suffering short of cash to meet the ends daily.         

 

 

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