Heat in parliament over Executive stranglehold of public finances

Friday, 6 June 2014 00:56 - - {{hitsCtrl.values.hits}}

Buddhika wants taxes on three-wheelers, mo-bikes slashed By Ashwin Hemmathagama Our Lobby Correspondent Lawmakers clashed yesterday unable to determine the control of finances, with opposition MP Buddhika Pathirana requesting the Government to bring down taxes on three-wheelers and motorcycles making it more affordable to the common man. In response, Minister of International Monetary Co-operation and Deputy Minister of Finance and Planning Dr. Sarath Amunugama confirmed that the permitting of “best possible tax reductions” for three-wheelers and motorcycles as well as for

spare parts is at the “sole discretion of the Executive”. Minister Amunugama’s comment dragged Opposition Leader Opposition Ranil Wickremesinghe into the fray, who subsequently demanded a rectification on par with Article 148 of the Constitution, which gives parliament full control over public finances. According to Article 148, no tax, rate or any other levy can be imposed by any local authority or any other public authority, except by or under the authority of a law passed by parliament or of any existing law, which obviously excludes the Executive President. “The Executive cannot be allowed to decide on taxes. Deciding taxes is a right this house has. This is a new but a wrong concept where the Executive takes decisions by overriding parliament. The control of finances lies with the house. Read the Constitution if you don’t know,” charged Wickremesinghe. MP Pathirana who was in favour of bringing down taxes on three-wheelers and motorcycles as well as spare parts, said: “Three-wheelers and motorcycles are used by the common man. You should be able to bring down taxes making it more affordable to the public. We are not for reducing the taxes for cigarettes, liquor or casinos. At least try to bring down the tax on spare parts. If you can bring the taxes down, many more would be able to buy three-wheelers and motorcycles. It will create more employment opportunities,” said Pathirana. However, Minister Amunugama held that there are 2.7 million motorcycles and 850,000 three-wheelers in Sri Lanka and all these vehicles were imported subjected to the existing taxes. “The demand for these two vehicle types increases on a daily basis and taxes are decided on having taken all these factors into consideration. Taxes cannot be reduced. Prevailing taxes have failed to reduce the demand for three-wheelers and motorcycles. Annual foreign remittances worth $ 6 billion have been received by rural Sri Lanka and this has been instrumental in building a new middle class. People have vested executive powers with us, so we do what we want. The taxes on spare parts are also very reasonable. It is true that we take the opinion of parliament or the legislature into consideration, but the Executive decides otherwise,” said Minister Amunugama.