Editorial

Security

Politics

World

Letters

Sports

Obituaries

Archives

by Gamini Warushamana

The Inland Revenue Service Union (IRSU) says that top officials in the Ministry of Finance have taken steps to bring the most controversial Revenue Authority again. The Secretary of the IRSU G.M. Jayaratne said that they have received information about a recent agreement signed between the Secretary of the Ministry of Finance and the Asian Development Bank (ADB).

Under this agreement, the government has agreed to set up an independent Revenue Board which is similar to the Revenue Authority proposed by the UNP government in 1994. The agreement was signed to get ADB US$ 70 million financial assistance to restructure the Inland Revenue Department (IRD).

Jayaratne said that the unions backed the move to restructure the department and improve efficiency in the department. However, the authorities have stealthily consented to abolish the department and create an independent revenue collection institution combining the IRD, Customs and Excise departments.

He said Ministry officials are trying to convince the top brass of the departments by giving various perks.

Deputy Finance Minister Ranjith Siyambalapitiya vehemently denied the allegations of the IRSU. There is no room for privatisation of vital government institutions in the policies of President Mahinda Rajapakse. On his visit to the ministry a week ago President Rajapakse directed the ministry to fill the vacancies in three tax collecting institutions and strengthen them, he said.

Siyambalapitiya said that steps have to be taken to make these institutions more efficient and increase government tax revenue. But all these steps will be taken after holding discussions with trade unions, he said.

Trade unions in the government sector say that departments are the best administrative structure that minimise political interference and protect their rights.

Jayaratne said that today the Central Bank does not recruit permanent employees and it hires workers from manpower agencies after similar restructuring.

They fear that this Revenue Board would be the first step towards privatisation. A restructuring process is now under way in the IRD with the aim of increasing government revenue.

The process was started in 2004 but the department is still behind its annual revenue targets.

The office of the Secretary to the Ministry of Finance also denied the allegations.

Treasury Secretary Dr. P.B. Jayasundera or the Commissioner General of Inland Revenue P.D.P. Karunasena were not available for comment.

A spokeswoman for the office of the Finance Ministry Secretary said that the Secretary had already clarified the matter with the unions.

She said that a meeting of the representatives of all trade unions in three tax collecting institutions has been scheduled for January 17 in this connection presided over by the Deputy Minister of Finance and the Secretary.

Jayaratne said that they received a letter from the Secretary, but the IRSU still stands by their position. Jayaratne said that they feel that President Rajapakse would not be aware of this move by the officials and the union has called for an appointment with President Rajapakse who is also the Minister of Finance.

www.ceylincoproperties.com

| News | Business | Features | Editorial | Security |
| Politics | World | Letters | Sports | Obituaries | Junior Observer |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager