News
Tax relief: No way now, President tells unions
President Ranil Wickremesinghe yesterday turned down a tax-relief request by some 40 trade unions representing professionals.
During a meeting with representatives of these trade unions, the President said that since the International Monetary Fund (IMF) negotiations were currently underway no decision could be taken to provide tax relief.
During the discussions, Treasury Secretary Mahinda Siriwardena made a presentation of the current economic situation while Central Bank Governor Nandalal Weerasinghe also briefed them. The President told the unionists that concessions could be provided in the future, but at the moment the Government needed to maintain the IMF’s trust by showing that it had a mechanism to make revenue.
The President said it was not possible to grant any relief until the IMF discussions were finalised.
Government Medical Officers Union (GMOA) Spokesman Dr Chamil Wijesinghe told the Sunday Times the unions representing the Professionals Trade Union Alliance too made their own presentations and explained why they opposed the tax policy and its implications on them.
The professionals proposed that the PAYE tax slab should be raised to Rs 200,000 upwards instead of Rs 100,000 upwards and the maximum tax should be 24 percent.
The Ceylon Electricity Board Engineers Union joint Secretary Isuru Kasthurirathne said the talks between the President and the trade unions were unsuccessful as the President pointed out that tax concessions could not be given at the moment.
He said they called for tax concessions under the PAYE tax and even gave proposals on tax revisions, but the president principally agreeing to that said he could not provide concessions at the moment as IMF negotiations were being held and the Government had to create trust that it was going ahead with the conditions given by the IMF.
He said the unionists pointed out that there was no use of getting concessions later as they were in urgent need of relief now in view of the high cost of living, the economic crisis and high taxes.
The President said the unionists could have another discussion with the Finance Ministry next week, and added he would give dates for the meeting.
Presidentian Secretary Saman Ekanayake, Treasury Secretary Mahinda Siriwardena, Central Bank Governor Nandalal Weerasinghe, economic advisors to the President and officials of the Department of Inland Revenue and the Budget Department were present at the meeting.
As the meeting was not a success Professionals trade union Alliance consisted of Ceylon Electricity Board, Ceylon Petroleum Corporation Water Board, Banks, Government Medical officers have decided to continue with the trade union actions from March 1.
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