President, PM in emergency meeting over VAT issues***

President Maithripala Sirisena and Prime Minister Ranil Wickremasinghe this morning began an emergency meeting – behind closed doors - in Colombo  with senior UNP ministers over the imposition of the disputed VAT from May 1.

The Value Added Tax of 15 per cent from next month, up from 8-12 per cent earlier, has raised disagreements within the coalitiion government. The VAT increase was announced by the PM, at the end of the Sinhala and Hindu New Year. However on Monday, the President was strongly critical of any tax increase that would burden the people and warned that any economic advisor who recommends such taxes would be sacked.

Informed sources said that the discussion would also centre on other tax increases with crucial decisions expected to be taken. No further details were available. A balance of payments facility from the Internatiuonal Monetary Fund (IMF) hinges on the government's promise of increasing taxes, reducing expenditure and raising revenue as local and foreign debts mount. (Bandula)