Opa At Your Service

Duty free allowance

Question: I am a great fan of your column to the extent of being inspired to search for all the previous issues and read for the sake of general knowledge.

I never had a question though, your article on February 12 under the title ‘Duty free allowance and the embarrassment caused’ prompted me to write this. Briefly, what is duty free allowance? Who’s eligible to claim the same? Will I be able to claim it now? I have worked in Saudi Arabia for 4-5 years and visited Sri Lanka once in two years on vacation twice. However, I never claimed duty free allowance or never aware of such a thing. I would greatly appreciate your kindness would enlighten me on this.

Hameem, e-mail address

Answer: During your vacation visit to Sri Lanka you may have seen some shops at the arrival section of the airport.

You may also have noticed other passengers purchasing and pushing on their trolleys liquor or electronic, electric equipment such as refrigerators and television sets.

These shops are permitted to sell these goods at prices below the outside market. These are lesser in price because the government has exempted these goods from the payment of import duty.

The purpose is to help people to purchase these items on arrival at our airport than purchasing these outside and bring it all the way paying extra freight charges. Any Sri Lankan who goes out of the country by air (or sea) and on return is entitled to a duty free allowance for the value of which he or she can purchase goods from the airport duty free shops. One can still bring in goods purchased outside but has to pay duty if not within the allowance permitted. The current duty free allowance are as below for being outside the country.

Children below 12 years - no allowance. Member of a family can combine their allowances. Above allowance are for a full year, however balance if any can be utilised on subsequent trips during a period of 12 months after which you are again entitled to the full allowance.

For purchase For purchase at Outside Sri Lanka Sri Lanka Airport

Below 30 days USD 125 USD 187.50

Between 90-365 days USD 500 USD 625.00

Over 365 days USD 1,000 USD 1,750.00

Obtaining NIC for dual citizens

Question: My daughters aged 18 and 16 are having dual nationality (British and Sri Lankan). They will be schooling and residing in Sri Lanka. Please let me know how I can get about getting their National Identity Cards.

Thank you for an early reply.

Mrs. R. S. Moraes,

e-mail address

Answer: You can apply to obtain an NIC for your daughters only once they come to reside here, not while they are overseas. Were they born outside Sri Lanka. If so has their birth been registered at the Consular (Sri Lanka) office in that country if so it will be much easier. If not the certificate granting Sri Lankan citizenship will be very important. The application forms for the NIC should be collected from the Grama Niladari who will also certify the photographs of the applicants. Usual procedure is to hand over to the GN, the completed application, photographs, copies as well as originals (to be returned of Birth Certificate and Registration of Citizenship etc.

The GN will send the application to the Department of Registration of Persons at Jawatte Road, Colombo 5 through the Divisional Secretary. The NIC along with original certificates will be sent back through the Divisional Secretary to the GN for your collection.

Since there is a risk with sending the original registration of citizenship, we suggest that you perfect the application, personally get it certified by the GN and the Divisional Secretary and to hand over the application direct to the Department, at Jawatte Road on any working day before 12 noon for one day (save day) service. You will incur an additional cost of Rs. 500 per NIC for same day service. This service is available only for new NIC application by those below the age of 20 years. One day service is not available for those over 20 years.

Income tax on interest income

Question: I am 71 years old and I get an annual return of Rs. 430,000 from my savings in the NSB. I have no other source of income. Since the income tax limit per individual is Rs. 300,000 have I to pay income tax on the balance Rs. 130,000, or, being a senior citizen is my income tax limit Rs. 500,000.

Please let me know as early as you can as I am not in good health.

Chandra Wijetunga,

Colombo 6.

Answer: Tax on interest income is usually deducted at sources by the institution/bank paying the interest as Withholding Tax (WHT) and remitted directly by them to the Inland Revenue Department.

Therefore, there is no other income tax on interest income. Up to Rs. 300,000 per annum interest income is free of WHT provided any other assessable income is less than Rs. 300,000.

In the case of senior citizens like you, the interest income exempted from withholding tax is Rs. 500,000 provided it is from a State bank. Since your investment is with NSB and since you have no other source of income your entire interest income of Rs. 430,000 per year is exempted from tax. You have to fill a form of declaration and send it to the NSB.

Anomaly in conversion of pension to 1997 salary scale

Question: This with reference to the question and answer which appeared in the Daily News of May 14, 2009 and my reply to you dated 24.5.2009.

I have traced the original letter, where the Q and A appeared in the Daily News of July 26, 2007 (copy annexed) where you had contacted the Pensions Department. The Director General’s reply dated 2007-09-19 is the answer for the problem, where he had approved the removal of the anomaly by considering 19 increments in the conversion of my pension to 1997 salary scale in 2007. Hence Sir, please see that the correct pension is paid to me from 2006/07 as approved and also the combined allowance of Rs. 280 a month.

W. R. P. de Mel, Panadura.

Answer: We find it very difficult to resolve your case although we have taken your matter up several times with Pensions Department. They say the maximum number of increments under 1997 salary adjustment will be only 15 whereas you are insisting on 19.

In order to assist you we have arranged with the Director Pensions for you to meet her and sort out your matter. We suggest that you make a trip to Maligawatte Secretariat Pensions Department on a Monday or Wednesday being public days and meet the Director Pensions, please take all the relevant documents and tell the Director that you have come to meet her at the OPA’s request.

Will NIC with error of name be acceptable for ETF claim

Question: I lost my NIC and obtained a fresh one in 2007 on the sameday service. However, on perusing the card, I found they have mis-spelt my name and also not included my surname. When I pointed this out to the officers there, they told me to come another day. But, due to pressure of work, I was unable to go to the NIC office again.

Now, I need to make an application to claim ETF, where there is a requirement to attach a copy of the NIC with the form from the office I worked. The form is filled correctly with my surname, etc.

My questions are:

1. Is it necessary to make an affidavit to correct my name?

2. Has this affidavit got to be signed by an Attorney-at-Law or Justice of Peace?

Would appreciate if you could please enlighten me on the above at your earliest.

M. I. I. Sheriff by email

Answer: However, busy you may have been, you should have attended to the correction of your NIC. As you know the NIC has become a very important document for most purposes. A mis-spelling of the name compounded by the non inclusion of the surname makes your NIC almost invalid. Now since it is over two years the Department of Registration of persons will request you to make a fresh application for re-issue of your NIC as they keep the relevant documents only for two years, after which it is not easily retrievable.

As far as the ETF claim is concerned you may not have a problem if your employer certifies the copy of your NIC as one and the same person to whom the particular ETF Account belongs.

An affidavit is not necessary as per the ETF department since the employer certification of the NIC is sufficient. Usually an affidavit has to be signed by an Attorney-at-Law, a Justice of Peace or Commissioner of Oaths. Otherwise it will not be acceptable to most organisations.

Delay in arrears of pension abroad

Question: Whilst congratulating you on the excellent and invaluable services rendered to public by altering and making them aware of their rights and obligations. Your intervention and advice have helped many to redress their longstanding grievances quickly avoiding unwanted expenses. Please continue with your excellent service.

I have a problem to be sorted out for my brother-in-law Dr. S. Subramaniam who is now resident in India after a recent heart operation.

His arrears of pension from 16-5-2002 to 31-2-08 to the tune of Rs. 1,002,794 have not been paid as Deputy H Office Chennai has no funds to pay the arrears for over 7 1/2 months since the pension was finalised after protracted delay only October/November 2008. Dr. Subramaniam came to Sri Lanka in the first week of November 2008, and met the Director of Pensions who assured him that everything is in order and he would receive payment by end of November 2008. But DHC office stated that they have not received the papers. Finally admitted receipt of papers in December but they had no funds to pay.

In March 2009 he was called to Chennai and paid monthly pensions from January 2009 whilst maintaining they had no money to pay the arrears of Rs. 1,002,794.

Can you please help?

M. Pathmanathan, Trincomalee.

Answer: We contacted the Pensions Department on this matter and understand that there has been a delay on account of such a large amount due to Dr. Subramaniam as arrears of pension.

The arrears have now been transferred to the Chennai Consular office. Can you inform Dr. Subramaniam to meet Mahindadasa of the Consular Office in Chennai regarding the payment of arrears.

Optometry as a profession to join OPA

Question: Optometry is an old profession practised by a few people from some families in Sri Lanka. Since then it has become a private organisation and doing well now, with a large number of members. I would like to know why it has not been registered in the OPA yet.

W. L. Gunawardena, Walpola, Ragama.

Answer: The OPA is an organisation of professional associations. Any professional association that conforms to the requirements stipulated in the constitution of the OPA is eligible to apply for membership and would be accepted. Professions which are a section or division of an already existing Member Association may not be considered for membership.

Do the opticians have a professional association in existence and recognised, if so they can seek membership. It also depends on the learning and training process with learning being equivalent to a University degree for recognition by the OPA as a professional body. You have stated that it is a private organisation, we don’t know what is meant by private.

Send your questions

The Organization of Professional Associations of Sri Lanka (OPA) will cover questions in all professions and subjects of common interest to the public in the Daily News OPA at Your Service page every Thursday. Please make your question brief. Questions can be directed to the OPA on e-mail [email protected] Fax: 2559770 or write to the Professional Centre, 275/75, Prof. Stanley Wijesundera Mawatha, off Bauddhaloka Mawatha, Colombo 7.