|
|
 |
 |
| Sunday, 5 September 2004 |
 |
|
 |
News |  |
| News Business Features Editorial
|
Government to repeal 2003 Tax Act by Gamini Warushamana and Hiran H. Senewiratne The government will introduce a new act in Parliament on Tuesday on the direction of the President to repeal the Inland Revenue (Special Provisions) Act, No.10 of 2003. After repealing the act government expects to collect millions of rupees due to the government as taxes and penalties that were lost by granting a tax amnesty. The new act will provide provisions to investigate the sources of income disclosed by 51760 declarants under the provisions of this Act. Government sources said that billions of dollars have been brought into the country by evading exchange control regulations and there had been a large money laundering process under the blanket tax amnesty. Officials said large sums of terrorist money had flooded the country and if proved the government could freeze all such money. This controversial Act was passed by the previous UNF government ignoring public opposition and provided blanket. It provided tax amnesty to income defaulters and financial frauds. This new act will only provide income tax amnesty, subject to verification of the Commissioner General of Inland Revenue. All other declarants have to pay due amounts to the government. The authorities will be able to carry out investigation on all the income disclosed by the declarants.As a result of this tax amnesty the government lost Rs.200 billion in revenue, including indirect taxes collected from the people. This Rs 200 billion is disclosed money and they are recorded in government accounts. It comprises Rs.68 bn in taxes, Rs. 120 bn customs duty and Rs.12 bn excise duties. If not for the tax amnesty these monies totalling Rs. 200 billion would have gone to government coffers. However the disclosed income of the declarants are more than this amount, official sources said. Under the Act a grace period was provided from March 17 to June 30, 2003. During this period 34900 declarants disclosed their hidden income. Later the grace period was extended up to August 31, 2003. During that period another 16816 declarants have disclosed their income. Sources said during the period hundreds of million US dollars were deposited in banks and exchange controller was not allowed to investigate the sources of the money. Government suspects that some of these money are terrorist funds. Asking what would happen to the credibility of the Sri Lankan State and the investor confidence as one government changes a parliamentary Act that has been passed by another government, the sources said repealing this act would definitely strengthen both the credibility and investor confidence,because the Supreme Court has declared that the Act is inconsistent with the Constitution of the country. On the other hand this act is openly violating all the rules and norms of good governance. Officials said that the act is violating the Geneva Convention of Human Rights, UN resolutions against terrorist funding and international laws against money laundering. Government urged people to force all legislators irrespective of political parties to vote conscientiously in repealing this infamous act and passing the new Act. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
