Thursday, 5 September 2002  
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VAT and wax

VAT doesn't impose taxes on basic essential goods. VAT assures that only two tax ratios will be effective. VAT frees you from the essential goods and services tax etc. These are some extracts from the full page advertisements placed by the Government to convince the people of the benefit of VAT in comparison to the former tax structures.

Despite the massive advertising in media certain manufacturers and traders are smart enough to dupe the consumer just after or immediately before the introduction of VAT.

This is one good example of such manipulation. The price of WAX MATCHES was earlier 1/50 per box, it was increased to Rs. 2 some time back and immediately before VAT came in it is increased to 2/50 which is an increase of 25% on the last price.

How well the Trade Minister's appeal to the manufacturers and traders to pass on the benefit of the new tax relief has been passed on to the consumer. Of course the manufacturers will have hundreds of arguments to justify this action.

P. K. D. WIJESENA , via e-mail

 

Misleading for survival

The present government decreased the tax on tobacco as soon as they came into power which led the prices on cigarettes to go down.

One may know or not know that the reduction of tax on tobacco resulted in a revenue loss to the government of rupees four hundred thousand in the first quarter of this year. (Quarterly Report of the CTC). Alternatively the money earned on cigarettes do not remain in this country, but go away out of the country as their parent company is in the United States.

The one and only reason, which the CTC highlights to influence the Government to reduce the tax on cigarettes, is "Illicit Cigarettes" or in other words white cigarettes".

They pinpoint that the reason for availability of illegal and inferior quality cigarettes in the market is high prices of "legal cigarettes" and in order to get rid of the problem the government should reduce the tax on cigarettes so as to bring down the price.

But do you know that it was the CTC who made white cigarette manufacturers to initiate its industry? It is now revealed that until a few years ago the CTC had been supplying raw material (inferior quality tobacco) for white cigarette manufacturers which now the company themselves use for their cheapest brands.

The tobacco industry throughout the world has been engaged in misleading the politicians, policy-makers and the media highlighting their importance by using fabricated stories so that they may survive in the industry.

Now I would like to take the liberty to point out to the readers a couple of examples for the sake of their information.

High price of cigarettes bring adverse effect on the poor - In Sri Lanka the highest consumption of cigarettes is reported among the poorest i.e. those who earn less than Rs. 1000 per month.

Along with the increase of price by 10% the consumption reduces by 5%. Accordingly it paves the way for a section of the poor people to get rid of the use of tobacco. Therefore this is an encouragement given to poor people.

People are motivated to use inferior quality products due to high price of legal products - This is not a realistic process of action. For instance those who have been trapped for the use of Bristol or Gold Leaf will not shift over to beedi at price hikes of the former products.

Similarly price hikes of legal alcohol will not affect to an increase consumption of kassippu. The best part of it will make the existing users to quit.

Increase of the price of legal products will increase the availability of illegal products - The level of implementing laws alone will affect the availability of such products. Increase of prices will decrease consumption for a short period of time. The reduced consumption will comeback to the former level soon - Although it looks as if this statement is true realistically this is not so. Increase of prices would decrease revenue to the government - When tax on tobacco is increased it will be a revenue gain to the government.

Even if the consumption is reduced there will not be a change in the revenue to the government.

However if the manufacturers increase the price it will decrease the income of the government and the money pushed out of the country will be more.

Advertisements do not encouraging using, it gives a message to existing users - Surveys carried out both nationally and internationally reveal that advertisements had attracted non-users to take to smoking. Loss of advertisements reduces the income of print and electronic media - This is a fabricated story of the industries.

There are adequate opportunities for other business advertisements.

MANJARI PEIRIS , Maharagama

 

Interest on over draft

The commercial banks pay only 1.75% as interest on RFC Dollar Account.

However when Over Drafts are obtained against RFC Account, the bank charges 14% to 15% as interest. This is day light robbery, where the customers are fleeced without any rhyme or reason.

The banks might state that, because of the fluctuation of the dollar, they are compelled to charge this amount,when in fact the fluctuation of the dollar against the rupee is very minimal at present.

Hence, the Central Bank should advise the commercial banks to charge a reasonable amount as interest, which should be in the region of 5% to 6% maximum.

A.C.

 

Disability - a development issue

Lionel Wijesiri in his lengthy article in the leader page (DN, Sept.22) has made a thought-provoking analysis and focused an 'eye-opener' for the need of a firm national policy in emphasising that disability is a development issue and that Sri Lankan social structure is yet to be modified to make pace for a population with physical disabilities to lead a normal life and the priority is that the disabled themselves should be given the pride of place as they are not given their legitimate rights of 'handling their own affairs'.

Today, the disabled are an enlightened lot and what they ask for is CHANCE not CHARITY.

According to ILO, as your correspondent has rightly pointed out, there are at least one million people with disabilities and they form a sizeable segment and Lionel Wijesiri's advocacy of having two seats for persons with disabilities in our Parliament will ensure that the disabled are able to present a strong case. This is a modest request and the number of seats suggested does not even constitute 1% of the total seats to represent over 10% of the population.

In the Mother of Parliaments - House of Commons' in UK adequate representation is given to persons with disabilities and at present the Minister for Home Affairs David Blunkett (visually handicapped) who was also the former Minister for Education is one classic example and a host of other paraplegic personnel in wheelchairs represent as Members of Parliament.

The time has come for persons with disabilities to rally round and create a united VOICE. This 'VOICE' has already made a significant impact on several South and South Asian countries - not only in regard to disability concerns, but also it has touched upon issues of justice and fairplay, human rights and international development and representation by the disabled themselves in central legislatures to fight for their Rights and Privileges and only then, and then only, will the 'goals of full participation and equalisation of opportunity' for disabled persons be possible.

I truly agree with your correspondent Lionel Wijesiri further of his comment that the 'disabled in this country are silent sufferers of humanity' and they are not given their legitimate rights of handling their own affairs. How true and correct and that is the crux of the problem as 'only the wearer of the shoe knows where it pinches'.

J. P. Pathirana , Jayanthipura

 

Telecom bills

I am a subscriber to the Sri Lanka Telecom to enjoy the telephone facility. When I received the telephone bill for the period 01/07/2002 to 31/07/2002,I noticed that I have been billed at rates above what is stated in the booklet issued by the Sri Lanka Telecom as "Revision of tariff for the year 2000".I settled the bill as a matter of necessity.I hope that the Sri Lanka Telecom will give wide publicity to any changes effected by it in that booklet and be kind enough to mention the effective date of such a revision.

It would be desirable to inform all the subscribers at least a month ahead of the effective date of any upward revision of charges and still better if it is directed to each and every subscriber individually.

ALBERT P. WICKRAMASINGHA , Kalutara North

 

Panadura bus accident, an eye opener

In order to save the lives of millions of commuters there are so many things to do. To do all these a dedicated and dutiful officers should be engaged.

Such officers should go out even in very early mornings to carry out their duties. They cannot confine themselves to offices from 8 a.m. to 5 p.m.

In order to arrest this situation a unit has to be set up from among the officials working in this field. Such a unit should have an updated list of bus owners who are operating in the various routes.

Even the names of drivers and conductors should be obtained.

We have found in most of the bus routes around Colombo that they drive the buses after consuming drugs.

This is very common today in buses plying from Kottawa to Colombo and there is no reason to doubt that the same things may be happening in other routes too.

Many drivers have no driving licences. The conductors who are anxious of becoming drivers learn their lessons at the risk of innocent commuters. Most bus drivers today have learnt driving by doing so. It should be made compulsory for the drivers to undergo at least a three months driving course by professionals before a licence is issued.

Unfortunately our country pays little or no interest to this subject.

The authorities allow the private bus owners to earn their buck without having any care of comfort to the passengers.

It is a pathetic situation and hope at least the present Transport Minister who is burdened with other subjects, look into this aspect seriously.

MATHOTA ABEYRATNE , Hatton

 

Ministry of Environment and Natural Resources

HNB-Pathum Udanaya2002

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