Government’s maiden effort imposes burdens on the people
Panellists : Wasantha Samarasinghe , Shiran Fernando and Sujeeva Samaraweera
The maiden budget of the new government has burdened the people by imposing indirect taxes, President of the Inter Company Employers Union Wasantha Samarasinghe said.The government has trebled the Goods and Services Tax (GST) to Rs. 378 billion in 2016 from Rs. 126 billion in 2015 and the people will feel the punch when their pockets get empty, he told budget discussion through skype organised by the Business Times. The GST has become the highest revenue earner for the state coffers in recent years.
He said that it is clear that the government will resort to increase indirect taxes rather than direct taxes deviating from their mid-term economic policy statement presented by the Prime Minister.This was an
indication of the lack of one clear cut policy in the government, he said, adding that the people cannot expect much from a businessman (Finance Minister Ravi Karunanayake) handling the country’s finances. The funny part in the reduction of commodities was that the prices of essential items such as dhal, potatoes and dried sprats stipulated in the budget is higher than the current retail price.
He noted that declaring a guaranteed price on paddy at Rs. 38-50 and fixing a selling price of rice at Rs. 60 is unrealistic. Under this set up the price of a kilogram of rice will go up to Rs. 80, he said. He noted that the proposal to provide financial assistance for farmers will take away their fertilizer subsidy. He expressed his doubts on the viability of merging the Samurdhi Bank Fund with National Savings Bank. It will be a threat for Samurdhi workers, he warned.
The salary increase of Rs. 2500 was included in 2015 and 2016 budget and is duplication of the proposal, he said accusing the government of not initiating a proper basis for a salary increase on behalf of private sector workers. He noted that they have continuously referred to the direct contribution made by the private sector to establish good governance. As such he emphasized that it is not sufficient to make merely a request to increase their salaries from the budget.