PARLIAMENT

Sri Lanka always with Japan

Parliament Corrs

Speaker Chamal Rajapaksa presided when Parliament met at 1 pm yesterday.

After the presentation of papers and oral questions, the House took up the Value Added Tax (Amendment) Bill, Nation Building Tax (Amendment) Bill, Economic Service Charge (Amendment) Bill, Strategic Development Projects (Amendment) Bill, Provincial Councils (Transfer of Stamp Duty) Bill, Debits Tax (Repeal) Bill, Finance (Amendment) Bill, Regional Infrastructure Development Levy (Repeal) Bill and the Excise (Special Provisions) (Amendment) Bill for debate.

International Monetery Co-operation Senior Minister Sarath Amunugama: These motions were presented as budget proposals through the 2009 budget. These amendments seek the legal status to budget proposals. We know that the present tax regime is very complex and complicative. That is why we have decided to introduce a simple tax strategy solution for Sri Lanka. Actually, these amendments were made in order to provide relief to the people.

The amendments were brought to Parliament after they were carefully studied in detail. The Government receive many requests from small and medium scale tax payers and businessmen for the introduction of a new tax system which would cater to their requirements as well as the country's needs.

We have taken this decision after much discussions with stakeholders in relevant fields. The tax system is easy to administer. It has been focused in improving the economy while generating income earning avenues. It is necessary to simplify the tax system. We also need to encourage tax payers in this country while simplifying the tax system.

We know that only a small percentage of tax payers pay their taxes today.

We need to create a conducive environment that is suitable for tax payers in this country. This is a user friendly system. We need a tax system which promotes local enterprenurs in this country.

It is also necessary to collect more revenue for the Government through taxes. Otherwise, we would need to go for more foreign loans. Therefore, it was the main objective of simplyping the tax system which will help raise the revenue to the country.

Our income targets for 2010 can be achieved easyly through this new tax system. At the same time we will not place any sort of burden on the ordinary citizen through this new tax system.

External Affairs Minister Professor G L Peiris yesterday stated that on a directive by President Mahinda Rajapaksa, the Secretary to the Treasury would hand over one million US Dollars to the Japanese Ambassador for relief and recovery efforts underway in Japan in the wake of the destruction caused by earthquake and the tsunami. G L Peiris made this observation during a special statement in Parliament, stating that the Sri Lankan Government had expressed its deepest sympathies to Emperor Akihito and the Japanese Government over the calamity that took place recently.

The Minister said that Sri Lanka was very confident that the people of Japan would draw on their tremendous reserves of strength and courage and showing their indomitable spirit as they have done on previous occasions in the past would overcome this calamity too.

Minister Prof Peiris further stated that the President in his message of condolence to the Japanese people had also noted that the Japanese people possessed incredible resilience and courage that would certainly help them to overcome any destruction and continue on the path of recovery.

He further said that the President, in a further manifestation of solidarity, support and compassion had visited the Japanese Embassy in Colombo to meet Japanese Ambassador Kunio Takahashi and sign the condolence book.

The Minister stated that as a further testimony to the abiding friendship and solidarity between the two countries, Sri Lanka would despatch a team of medical professionals to help those who had been affected by the disaster along with a search and rescue teams comprising armed forces personnel who are trained for the purpose.

Prof Peiris further added that Sri Lanka would extend further assistance to Japan if necessary.

The Minister also stated that the Japanese Government had informed Sri Lanka that there was no need for measures of an emergency nature following the explosions at the nuclear power plants in the Fukushima area, which was nearly 200 km North of Tokyo.

The Minister further stated that a large number of Sri Lankans had opted to return to Sri Lanka following the disaster.

But the External Affairs Ministry with the Embassy of Sri Lanka in Japan and SriLankan Airlines, had facilitated their return, which was purely a commercial operations.

The Minister also added that the Sri Lanka Embassy continued to be in close contact with the relevant Japanese officials with a view to ensure the safety and wellbeing of the Sri Lankans in Japan.

Minister Prof Peiris further said that Sri Lanka stood ready to give further assistance to the Japanese people to assist them overcome the devastation.

Minister Prof Peiris said that Sri Lanka would stand by them in a spirit of friendship and solidarity at this time of difficulty.

Opposition Leader Ranil Wickremesinghe stated nobody had ever anticipated that such a terrible disaster would affect Japan with an earthquake of a Magnitude of 9 Richter scale, adding that ships resting on skyscraping buildings was witnessed.

The Opposition Leader further stated that Sri Lanka and its people wished the Japanese people a speedy recovery.

Ravi Karunanayake MP

Deputy Speaker Chandima Weerakkody takes the chair.

The country's economy should be strengthened through the new tax system. It is necessary to prepare a tax strategy by reducing the burdens on the ordinary people. Today the cost of living is skyrocketing. The Government should take necessary steps to utilize this tax system to provide benefits to the ordinary masses. Taxes imposed on essential commodities are very high.

A proper policy has not been formulated with regard to tax collection. The Government should streamline the tax collection process. There are many problems prevailing in tax collection departments of Provincial Councils. This has resulted in the loss of many income avenues to the Central Government, as well as to the Provincial Councils.

The Government should also recruit tax collecting officers since the present cadres are insufficient.

Environment Minister Anura Priyadarshana Yapa:

A H M Azwar takes the chair.

We are happy over the decision taken by the Government to introduce a simple tax system. This system will not place unnecessary burdens on the ordinary masses. The Government does not act according to IMF rules.

We only follow the Mahinda Chintanaya which is accepted by the majority of the people in this country. The Government never took measures to reduce the taxes on the import of luxury vehicles. The benefit of tax relief given by the Government are actually reaped by the ordinary people. Today there is a great demand for three-wheelers, Maruti cars and motorcycles. People have to wait for nearly 3-4 months to obtain their vehicles.

The Government has taken measures to increase the number of public servants from 600,000 to 1.3 million. We have also increased the salaries of public servants upto a certain extent. The Government has taken measures to ease tax burdends of the people by formulating a simplified tax system.

The tax system will definitely help to achieve our economic targets during the coming years.

Today the entire country is marching towards a speedy growth. Roads in rural areas have been renovated and carpeted.

Nearly 90 percent of households enjoy electricity. Pipe-born water is provided continuously to the people. Living standards of rural folk have been increased. They are made aware of modern technologies and are able to utilise credit cards and mobile phones in their day to day needs.

Dr Harsha de Silva UNP: The people are facing great hardships today.

Speaker Chamal Rajapaksa takes the Chair.

The rate of consumption of essential commodities have gone down. How can the Government say that the living standards of the people have gone up if the consumption rate had reduced? The quality of life of the people have deteriorated. The people's domestic income has also decreased during the Mahinda Rajapaksa regime. There is a drastic decline though the Government says that it has simplified the tax system. It is a lie.

The Government has imposed many taxes on essential commodities of the people.

Ajith Kumara (JVP): The Provincial Council has become a white elephant. The Council's expenditure exceed the tax collected by it. The Government has admitted that provincial councils were a failure. The Government has increased the Nation Building tax to 3 percent and then reduced it to 2 percent. The people should know what had been accomplished with the revenue collected from the nation building tax. Local Government bodies should at least get involved in the disposal of garbage, which would otherwise affect the tourism industry. .

The Bills were passed with amendments.

House adjourned until 1.00 pm today.

For tourist resorts:

Two islands off Kalpitiya to be leased

Parliament Corrs

Economic Development Deputy Minister Lakshman Yapa Abeywardena told Parliament yesterday that two islands off Kalpitiya had been leased to two companies from India, Switzerland and the Maldives.

The two islands, Vellai and Ippanativu had been leased out for a period of 30 years to be developed as tourist resorts, the Deputy Minister said.

Answering a question raised by UNP MP Gamini Jayawickrema Perera the Deputy Minister said the Vellai island had been leased on a joint investment with Sri Lanka, the

Maldives and Switzerland while the Ippanativu island had been given to an Indian company. Both the islands had been leased for the construction of tourist hotels for a period of 30 years.

The basic lease for the Vellai island for first five years was Rs 3,709,999.88. The leased would be amended once in five years. The basic lease for the Ippanativu island for the first five years was Rs 14, 914,397.40 which would be amended once in five years.

When questioned as to who the leases were, the Deputy Minister said that the Vellai island had been leased to Sun Resort Investment Lanka Private Limited while the Ippanativu island had been leased out to Cube Leisure Property Private Ltd.

The agreements had been signed with the two companies after the Attorney General's Department had approved them, the Deputy Minister added.