|
Strategic
alliances with the private sector
There are no plans for expanded privatisation of state ventures
except for strategic alliances, said Finance Minister Dr Sarath
Amunugama in an interview. Here are excerpts of the interview:
There
have been cordial discussions with the ADB and a strong commitment
on the part of ADB for support in infrastructure - the southern
highway, A-9 and a fresh look at the Katunayake highways development.
On
privatisation
Our policy is clear. We are not for privatisation as followed
by the UNP. In the key social welfare areas such as education, health
and surface transport the public sector will be the dominant player.
However the private sector has also been allowed to operate in these
fields. We are aiming at healthy competition. The public sector
will have to show their capabilities particularly in the case of
the bus and railway transport. They have to come back to profitability
as at present these two institutions are heavily subsided by the
Treasury.
Regarding
other areas, the government will not privatise but enter into strategic
alliances as we have done in the case of the port, SriLankan Airlines,
Telecom, etc. All these alliances are working well and are a healthy
addition to our economic growth.
Pension
reforms
We are looking at several areas of reforms in the administrative
sector. The public administration reforms is one sector followed
by salary revision. The latter has been entrusted to the Tissa Devendra
Committee which is now functioning. Once their report is ready we
will decide on the next step.
Amalgamation of the EPF and the ETF?
We haven't gone into that as yet.
New taxes
The main sources of revenue are from income tax, excise
duties and customs taxes. We have given the utmost priority towards
increasing revenues from these sources which were riddled with loopholes.
For instance during the previous government, the last budget failed
to achieve both income and expenditure targets. While income decreased,
expenditure increased. We have tried our best to galvanise these
three departments and happily, compared to the last five years collections,
we have been able to record a substantial increase in the last two
months. This is not sufficient. We have to back this up with more
legislative and other powers and I intend going to parliament to
get approval.
So tax collection is improving?
It has improved. Customs collections have gone up. Also
there have been a lot of detections in fake cigarettes resulting
in our income from Ceylon Tobacco Co increasing substantially.
Any tax amendments planned?
The tax amnesty of the last government was a terrible disaster.
While some individual taxpayers were justifiably given relief, the
amnesty given to corporate taxpayers who cannot claim that they
were ignorant of tax laws is inexcusable. It was nothing more than
a payoff for political support.
We
are now engaged in an audit of these corporate contributors who
really make up the largest part of the tax collection. There are
many loopholes here and companies that have made millions are escaping
the tax net. Some exemptions are ridiculous. For example the VAT
collected from consumers are not remitted to the Inland Revenue
Department but has been pocketed by these companies under the amnesty!
Secondly companies that have been fined even by the courts have
been granted exemptions under this law. Naturally we are looking
at this inequities law and I hope to come to parliament to rectify
these glaring errors which were I believe politically motivated.
Savings
from defence
Any finance minister has to look seriously at defence
expenditure. In the first few years naturally rollover expenditures,
etc have to be borne by the Treasury. But with the continuance of
the ceasefire agreement and likely peace talks, the Treasury will
take a serious look at the defence expenditures. This will not be
an easy task because many "money makers" are behind defence
budgets. But it will become a major responsibility of the Treasury
to make sure that the country is not burdened because of weak accounting
and other practices in the defence sector.
So the government will try to cushion the impact of rising oil prices
and not burden the consumer?
That's right. We are trying our best. |
