Good use of tax money

Remember the old adage - two wrongs don’t make a right-

Well the reverse is happening just as local newspapers and international news agencies chronicle and regale readers across the globe with the mercedez benz drama. Never has a car become such a hot topic that it has to dominate press conferences by political parties from all sides of the fence.

Government ministers even used the Information Department for a political event – to berate the United National Party (UNP) for duplicity. Not that it was far from the truth. It’s no secret that most parliamentarians have sold their vehicle permits though not entitled to do so.

Thus the UNP cannot hide under the pious carpet. Its members have also sold car permits as much as the JHU which is getting into murky water with each denial, coming from different ways.

Anyway as stated above two wrongs don’t make a right, and the JHU action should be condemned as an act by a political party against all forms of good governance and transparency.

These issues are being raised to illustrate an excellent presentation made by respected business leader Rienzie Wijetilleke on corporate governance and the state of the country.

Wijetilleke, chairman of the Hatton National Bank, speaking to members of The Sunday Times Business Club this week, slamming politicians for their inefficiency, mismanagement and sheer indifference to the state of the country.

The HNB alone, he said, pays more than a billion rupees in taxes but where does this money go? “To pay large-sized cabinets and fund expensive cars?” he asked.

Wijetilleke, who made a radical proposal some years back during the time of a UNP government that the country should be handed over to a management corporation that could be thrown out if it didn’t perform, came up with a more practical solution: The private sector should be allowed to channel part of their taxes to a social development like education or health.

“Look at the state of health and education. We at the HNB could have funded the construction of a new hospital with part of the taxes if we were given the choice. Now we don’t even know what happened to this money,” he said.

He said while politicians argue about the best solution for this country which is bleeding to death with the loss of young lives from both government forces and the LTTE, the health and education sectors are worsening.

For example, only 37 percent of the health budget has been utilised, an absolute crime, Wijetilleke said while noting that of the 120,000 students who qualify for university admission, only 20,000 are absorbed due to limited vacancies.

The rest would end up frustrated, challenged and desperate. Students at international schools and private universities thus are in a better position to succeed and get the best jobs in Colombo.

The HNB chief however extolled the young business leaders in the club to incorporate good governance in all their actions in the office and home which was the most honest way to succeed.

While Wijetilleke’s words would as usual fall on deaf ears in lethargic Sri Lanka, his proposal for private companies to be given a choice of channelling a part of their tax money to a national development project should be taken seriously and promoted.

Such a taxation system is prevalent in other countries where in some cases even individual taxpayers have such a choice to ensure their money is well spent. In Poland for example tax payers are permitted to use some of their tax money to fund approved charities!

Given the way Sri Lankan politicians are liberal with our money in the name of development (fast cars, bloated staff, massive cabinets, etc), such a tax proposal would ensure the country’s pace of development is speedier because of money being well spent on social development or infrastructure.

If 10 percent of the country’s tax revenue set at a targeted Rs 600 billion this year (which works out to Rs 60 billion) is allowed to be channelled to development projects as the choice of the people, then there is no doubt much more development will take place, quicker and with more transparency.