[PARLIAMENT]

House takes up three Bills for debate:

‘Taxes imposed on certain sectors have been abolished’

Sandasen Marasinghe, Irangika Range and Disna Mudalige

Speaker Chamal Rajapaksa, presided when Parliament met yesterday at 9.30 am. After the presentation of papers and oral questions, the House took up the Inland Revenue (Amendment) Bill, Notaries (Amendment) Bill, and Powers of Attorney (Amendment) Bill for debate.

Finance and Planning Deputy Minister Dr Sarath Amunugama: These amendments were presented with the 2013 budget moved by President Mahinda Rajapaksa in his capacity as the Finance and Planning Minister. We expect that the national economy would be promoted through these amendments.

Deputy Chairman of Committees Murugesu Chandrakumar takes the chair.

The imposition of taxes and amending the existing tax structure have been made by the government according to development and economic needs of the country. The objective of the amendment being debated under the Inland Revenue (Amendment) Bill, is to streamline the activities of the Inland Revenue Department.

The Inland Revenue Department brings in the highest revenue to the country. Therefore, the government has paid special attention to restructure the department by upgrading its facilities, while providing the much needed human, physical and technical resources. A number of taxes imposed on certain sectors have been abolished while the percentage of several existing taxes have been reduced through these amendments.

Many tax concessions have been granted on small and medium scale enterprises. It has been targeted to upgrade our position in the international market by improving local productivity. Tax concessions have been given on research development to achieve this target. Tax concessions have also been granted on the renewable energy sector as well as organic fertilizer manufacturing sector, as solutions for the problems of increasing electricity bills and chronic kidney diseases due to Arsenic.

Tissa Attanayake (UNP): Corruption is rampant throughout the country. Why is the government unable to eliminate corruptions ? It is useless developing the country unless bribery and corruption are eradicated from the country.The Norochcholai coal power plant is forever breaking. There had been a massive fraud of US $100 million during the construction of the power plant. Why don’t the government commence investigations to probe this matter? There is a proposal of increasing the electricity bill by 50 percent. This is an extra burden to the ordinary people. The electricity bills were to be raised by the government to cover up losses, waste and expenses of the Norochcholai power plant.

Public Administration and Home Affairs Minister W D J Seneviratne:

The registration of documents is being computerized, which would provide an efficient service to the people. Notary fees had been increased from Rs 10 to Rs 1,000 after a period of 75 years. So I do not think it would be an injustice to the people. Today, the Ceylon Electricity Board incurs a loss of Rs 40 billion annually, due to the hike of fuel prices in the world market. The newly set up Norochcholai power plant generates 300 MW of electricity. It is because of the Norochcholai coal power plant, that electricity could be provided to the consumers at low rates. The Opposition tries to mislead the people by alleging that the power plant is forever breaking. But there is no technical breakdown in the power plant now. It was the government which constructed the power plant in Norochcholai, which was neglected by previous regimes for the past 19 years.

TNA trying to imply of a military administration in Jaffna

A H M Azwer (UPFA): The arrival of Indian diplomats to Sri Lanka is a good blow to Karunanidhi. He thought that due to his protests the Indian delegation would not come to Sri Lanka and it did not happen. The TNA attempts to create a picture to imply that there is a military administration in Jaffna. But what has the TNA done for the Tamil people in Jaffna so far?

Issues concerning ownership of land should be addressed

Vijitha Herath (DNA): Out of these four financial acts, three suggest to increase certain charges.

There are many issues on the ownership of land in the North. Although there are delays, these issues should be addressed. As an initiation, a commission on lands should be set up.

With the imposition of these taxes, excess burdens are put on the people. It shows that the policy of the government is wrong. A US mission came to Sri Lanka as a fact finding mission and they entered into agreements with the Central Bank. Those burdens too would be put on the people by way of tax imposition.This would result in the price increase of commodities.

Sriyani Wijewickrama in Chair.

I wish MP Namal Rajapaksa a happy birthday on behalf of the chair.

Wildlife Minister Vijith Vijithamuni Soyza: The money spent for the development of the country is the tax money of the people. The tax money is imposed according to per capita income.

We have only one port. We could not make a single port or airport after the British. Now we have been able to do so. The JVP is making various baseless allegations. They don’t have a future in politics. The people are provided with infrastructure services with the tax collected from them.The JVP and UNP ask us not to collect tax money and not to take loans, which means they asking us not to provide services and infrastructure to the public. Opposition Leader Ranil Wickremesinghe spoke of a radical change. We saw his radical change in his torture camps.

We have imposed a just tax system and provided the people with services.

Fishing community not looked after

Sajith Premadasa (UNP): The fishing community is not looked after by the government. The fuel subsidy given to them had been curtailed by10 percent.The promise of constructing 30,000 houses for the fisher families had not been fulfilled. Not a single house had been constructed for them.

The government has not initiated the farmers’ pension scheme. Even though the government promised to pay its monthly payments with arrears to the beneficiaries, still this had not been done. Where are the dividents of peace to the people? What are the benefits they received in the post war scenario?

Uditha Lokubandara takes the chair.

V S Radhakrishnan (UPFA): The opposition never acknowledges the positive changes and programmes in the country. The ‘Deyata Kirula’ and ‘Divi Neguma’ are commendable programmes. But the opposition is not ready to admit this.

Income generating within the country is necessary for constructive work.

I also wish to take this opportunity to express my dissatisfaction over the recent statements by various groups that Tamil films should not be shown in Sri Lanka. Political issues should not be mixed with cinema or cricket. Our players are going to India and they are welcomed in India. We should not look at problems in a narrow minded manner.

Y G Padmasiri (UPFA): Corruption and fraud in the country had increased with the greed for money in society. These amendments are necessary to control corruption and fraud. The fee to obtain Notary licenses had been meagre and therefore we have no objection of increasing this up to Rs 1,000 to suit contemporary times. It was a must.

Today the taxation policy of the government is not unfair to people.

Speaker Chamal Rajapaksa takes the chair.

Eran Wickramaratne (UNP): The Inland Revenue Act has been amended today. As Dr Amunugama pointed out, the amendments provide for the facilitation of research and green energy.

This is a good move as an encouragement for them. But this Bill has certain loopholes too. Moreover, the initial Bill had 34 pages and since morning today, we have obtained another 24 pages of amendments.

The economic policies of a government should aim at the betterment of low income people in the country. We are not against the Hambantota Port, but this investment should have been more systematic.

Govt spending large sums of money on fertilizer and Samurdhi allowance

Investment Promotion Minister Lakshman Yapa Abeywardena: Eran Wickramaratne MP questioned of the hurried presentation of the Bills. We had to do so because those were important amendments. I would also like to point out that until the Strategic Development Act was presented by this regime, there was no way of making this House aware of the investments with national importance to the country. It was during 2005-2012, the greatest amount of FDIs was received by the country. It is the Opposition who attempted to scare these investors. We have provided tax exemptions and tax concessions for the needy sectors.

We have been able to secure more and more investments through these moves. We are spending colossal amounts of money to provide the fertilizer subsidy and Samurdhi allowance. The Opposition does not talk about them.

Ajith Kumara (Independent): Government members say that tax is imposed to provide development and welfare to the public. They say it here. But I request them to tell so to the public in their villages. They don’t do so. The electricity bill is to be increased. Petrol, diesel and kerosene oil prices were increased. The people are suffering. The government had not given them anything. Fuel concession to the fishermen had not been given for the months of February and March. The city of Colombo is being made beautiful. Colombo will not be beautiful by beautifying around the Parliament.

Shriyani Wijewickrama (UPFA): A large number of concessions have been granted to tax payers through the amendments to the Inland Revenue (Amendment) Bill. The tax structure has been simplified through these amendments to suit the current needs of the country. It is very important and appreciated that tax concessions have been granted to SME enterprises, organic fertilizer production and foreign investments through these proposals. Computerising the process of registration of documents would increase the efficiency in the public sector, while providing service to customers without any delay.

Gamini Jayawickrama Perera (UNP): Economic strategies should aim to increase the country’s production. But the current economic strategies followed by the government has failed to do so. The government should take a wider contribution of the people to enhance local production. Today, the country’s economy is heavily depending on loans. A number of small and medium scale enterprises are being closed down. These SME businessmen say they are not provided with any facilities, financial assistance and tax reliefs by the government.

Investment Promotion Deputy Minister Faiszer Musthapha: The government is fully committed to work towards the betterment of the people. President Mahinda Rajapaksa has a far-sighted vision. He always thinks about the future when decisions are being made. He believes that peace and development should reach the ordinary people of this country. We are a proud nation. State policies are helping to upgrade our position in the world. It is our target to enhance foreign investments, while safeguarding the local entrepreneurs.

R Yogarajan (UNP): The government plans to build a new airport in Nuwara Eliya. But, it is a useless proposal. People of Nuwara Eliya, wants facilities such as housing, electricity, water and education and not airports. People are suffering from severe difficulties. They are unable to face day to day expenses from the small salaries they receive today. The entire economy is very unstable. The people are living in poverty. The government should rethink about its policies which are favourable to the common man and not for the the rich class.

Janaka Vakkumbura (UPFA): The Opposition never appreciate the tax reliefs given to the people. The government has provided a number of reliefs such as Samurdhi allowance, fertilizer subsidy and fuel subsid during the past six years.

The Samurdhi campaign had contributed to enrich the lives of poor people. We have already fulfilled 95 percent of the electricity demand of the people. After the conclusion of the war, roads, bridges and other infrastructure facilities in the entire country, including the North and East have been uplifted.

Senior Minister Athauda Seneviratne: The government received loans to initiate well planned development targets. It did not waste this money for regular expenses. The dividends of these development projects would surely come in the future though not immediately.

Speaker Chamal Rajapaksa in Chair

I would like to wish all the people of Sri Lanka, including the President, the Ministers, MPs, Parliamentary staff and the Media personnel, a very happy Sinhala and Tamil New Year.

The House was adjourned until 1.00 pm on April 23.