Required, a holistic approach

A majority of the public will no doubt agree with the pertinent observation made by President Mahinda Rajapaksa that any decision taken that would affect the prices of essential items should be done with responsibility and forethought. It was the President’s view that juggling with taxes and levies in isolation could have a ripple effect impacting on the common man not to mention the welfare measures and subsidies that are in place to provide relief to the poor.

The thrust of the President’s argument was this should be done with a broader perspective taking a holistic approach. It is important to ensure that relief granted to one sector does not cause a burden on another front particularly the deprived sections.

Addressing a function at Temple Trees on Monday the President said the needs of a mere four per cent of the people using petrol for cars could not supersede the needs of more than 90 per cent of the people travelling by bus and train. This sums up the whole issue involving the new fuel pricing.

The President’s argument is that whatever decision that impinges on Government levies and taxes spelled out in the budget should be done considering the larger picture. Any decision that benefit one sector to the detriment of another cannot be condoned.

Such a holistic approach would not only help keep the Government’s fiscal proposals intact but also ensure the welfare measures funded from the taxes derived are not disturbed or atrophied.

The President produced a typical example in this regard when he pictured a scenario where citizens could one day go to Courts against duties levied on arrack, cigarettes and luxury cars the sources which derive substantial revenue to the Government that go to fund a series of subsidies and welfare measures for the poor.

Will this mean that the Government will have to forgo this revenue to permit a drinking spree in the country and the indulgence of the super rich owning luxury cars while letting the poor and the marginalised stew in their juice.

There are those who display ignorance on the rationale behind fuel taxes. They are unaware that this serves as a charge for the use of public roads as in many countries. Therefore, taxes on petroleum products are seen as comparable to the charges levied by the Government for the provision of various other services such as electricity and water.

The user charge for roads is usually meant to cover at least the additional maintenance costs stemming from the incremental road use. Hence it is clear to the discerning that all taxes and levies on fuel are recycled for the maintenance of roads and related infrastructure that would benefit the ordinary public.

Any move to subvert this smooth flow would only cause a breakdown in the vital services to the public and by extension to the development plans for the country.

The President also made the pertinent point that a reduction in local prices merely due to a drop in world market prices of commodities is untenable due to this advantage being offset by a drop in prices earned from exports.

All this shows the intricacies involved in balancing the complex tax structure and is all the more reason for a holistic view on the subject.

That is why he emphasised the other day that the Government cannot be bound by price formulas.

While it is accepted the Courts function as a bulwark against excess of the executive and the legislature and against abuse of individual rights and freedoms, the current imbroglio would indicate that a better understanding and cohabitation between the three limbs of Government (the Executive, Legislature and the Judiciary) would help tackle issues from a larger perspective that benefit the people on the long run while also further strengthening democracy. What is important in the end is the people’s welfare.

After all, the sovereignty of the people are vested in the executive and the legislature and exercised through the judiciary. Hence a need for a healthy rapport between all three arms of the State to facilitate benefits to the people. A Parliament ruling in this regard during the tenure of the late Speaker Anura Bandaranaike has already underlined this position.

At a time when the country is at a decisive stage in the war and bracing for the fall out from the global economic slump the current situation should not be used as political tool to be exploited. The UNP has already started fishing in troubled waters and party leader Ranil Wickremesinghe is going around the country misrepresenting facts to the public.

Does the UNP leader want the public to seriously believe that a Government under him would have done any different and pass on any advantage to the people. But his record speak otherwise.

The party was swept out of power at the 2004 General Election mainly due to its act of slashing subsidies and curbing welfare measures of the poor. One of the chief complaints of the UNP defectors was that they were unable to provide even a single job to their supporters during their time. It was left to President Rajapaksa to fulfil this need. The public, we are certain will not be sold on this new altruism displayed by the UNP leader.

Instead what is required is a joint effort by both major parties to work towards the public welfare at this crucial juncture placing a moratorium on contentious politics.