JVP to vote against VAT bill on 11 Aug.

By Chamodi Gunawardana

The Janatha Vimukthi Peramuna (JVP) yesterday said it would vote against the Value Added Tax (VAT) Bill which is scheduled to be tabled on 11 August. 

Speaking at a media briefing JVP Leader Anura Kumara Dissanayake claimed any parliamentarians who are really concerned about the people’s welfare would not vote in favor of the draft which will increase the indirect tax burden on the general public.

“Finance Minister Ravi Karunanayake stated via the interim budget that the Government is expected to achieve a state revenue target of Rs. 1,535 billion or 13.6% of Gross Domestic Product (GDP) which was continuously decreased from 15.6% to 11.6% in the last year. Then they have the only option to increase direct and indirect taxes,” he noted.

Adding to that Dissanayake charged: “Probably the direct taxation should be higher than indirect taxes and it should be 60% and 40%, but past few months the Government has collected 15% of direct and 85% of indirect tax. It is totally unfair for the general public.”

Commenting over state revenues, Dissanayake claimed the Government has earned 90% of GDP only via taxes.

“Due to the false economic policies applied over the last 68 years by several Governments, the State owned institutes have incurred massive losses or gone bankrupt. Therefore all Governments were only focused on tax revenue,” he said. 

Dissanayake also said the proposed tax amendments would put more indirect taxes on the public. 

“The Government included VAT for new areas such as health sector, telecommunication, wholesale and retail business. We believe the amendments will apply more taxes on new areas for sure,” he said. 

Dissanayake also claimed there was a ‘secret deal’ between former President Mahinda Rajapaksa and Prime Minister Ranil Wickremesinghe to conceal the financial frauds of the ex-first lady Shiranthi Rajapaksa. Dissanayake alleged even though the Financial Crimes Investigation Division (FCID) inquiries against her had concluded with findings of fraudulent engagement during the past Government period, she has not been brought before a Court.

“When FCID issued a report on Shiranthi’s frauds, Rajapaksa had contacted Wickremesinghe and requested to hold inquiries. Due to the deal Wickremesinghe was trying to defend them,” he alleged. 

Dissanayake further charged the Joint Opposition and Wickremesinghe have another deal to tear the Sri Lanka Freedom Party (SLFP) in to pieces. 

“The Paada Yathrawa was all about how to split the party and Wickremesinghe indirectly supported it,” he claimed.