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May 07, 2012 (LBO) - Amid pressure from a parliamentary committee for remaining workers of state-enterprises to pay income taxes, finance ministry secretary P B Jayasundera has said all persons must get used to paying taxes.
The Committee on Public Enterprises (COPE) of Sri Lanka's parliament has revealed that at a handful of state enterprises instead of senior employees, the institutions had paid up to 3.2 billion rupees as pay as you earn (PAYE) taxes.
"Some agencies, I am aware are still paying on behalf of their employees," Treasury secretary P B Jayasundera told reporters last week.
"As COPE has directed all line ministry secretaries to take appropriate actions - those chairman and heads of corporations to take appropriate action - I hope COPE is more effective in implementing this and helping the national Treasury."
From last year under Jayasundera's watch as finance secretary an unjust law that exempted state workers from income tax was ended. In feudal societies the king is exempted from taxes.
In 1978, an administration headed by a section of Sri Lanka's elected ruling class, the United National Party, exempted politicians and state workers from tax.
In Sri Lanka's parliament which is unrestrained by a constitution guaranteeing absolute equalities to citizens, unjust discriminatory sovereign commands which undermine rule of law have been passed as 'law' starting from soon after independence from British rule.
One of the first such was the so-called Sinhala only 'law' which stole the language liberties of citizens.
Jayasundera said even a person earning 200,000 a month only paid about 10 percent in tax and the average tax rate for even highest salary brackets were only about 17 percent.
A person who earned above 50,000 a month with the first 400,000 rupees exempt, only paid about 4.0 percent as taxes, he said.
"These workers are should also get used to paying these taxes," Jayasundera said. "If a person who earns more than 50,000 rupees a month says he cannot pay 4 percent tax, there is something wrong."
He said the issue at state enterprises arose in the mid 1990s when the government decided that workers in state enterprises should pay income taxes.
Later incomes other that state salaries of public servants were taxed. But in a recent budget all incomes were being taxed.
"Now politicians are also being charged tax. From last year, PAYE, members of parliament, ministers, senior officials all had to pay taxes," he said.
So from 2010 all public servants should also pay tax for several reasons. One is taxes have been simplified.
"There is no justification to keep public servants free from tax, when the private citizens pay taxes, and there is also no moral justification for us to administer taxes while we do not comply."
In Sri Lanka's state workers still get tax slashed cars, while common citizens outside the state have to pay high taxes on cars.
Politicians pay no taxes at all on their cars. There has been growing public anger at the discrimination, particularly after a recent hike in vehicle taxes.
Jayasundera however said the tax free cars given to politicians and state workers were a tradition.
"It is for ministers, senior public servants and public servants and the average public servants there is a classification. So that classification has been maintained," he said.
"After all this is basically the longstanding tradition and those traditions are maintained.
The tradition of giving tax free cars to the ruling class of elected politicians was also started under an administration headed by Sri Lanka's United National Party.
Provincial councilors were given tax free Mitsubishi Pajeros under Sri Lanka's then-president, Ranasinghe Premadasa, when parliamentarians bought BMWs.
To this day the particular Pajero is known as the 'Palarth Sabhar' (provincial council) model.
http://lbo.lk/fullstory.php?nid=1853444140
The Committee on Public Enterprises (COPE) of Sri Lanka's parliament has revealed that at a handful of state enterprises instead of senior employees, the institutions had paid up to 3.2 billion rupees as pay as you earn (PAYE) taxes.
"Some agencies, I am aware are still paying on behalf of their employees," Treasury secretary P B Jayasundera told reporters last week.
"As COPE has directed all line ministry secretaries to take appropriate actions - those chairman and heads of corporations to take appropriate action - I hope COPE is more effective in implementing this and helping the national Treasury."
From last year under Jayasundera's watch as finance secretary an unjust law that exempted state workers from income tax was ended. In feudal societies the king is exempted from taxes.
In 1978, an administration headed by a section of Sri Lanka's elected ruling class, the United National Party, exempted politicians and state workers from tax.
In Sri Lanka's parliament which is unrestrained by a constitution guaranteeing absolute equalities to citizens, unjust discriminatory sovereign commands which undermine rule of law have been passed as 'law' starting from soon after independence from British rule.
One of the first such was the so-called Sinhala only 'law' which stole the language liberties of citizens.
Jayasundera said even a person earning 200,000 a month only paid about 10 percent in tax and the average tax rate for even highest salary brackets were only about 17 percent.
A person who earned above 50,000 a month with the first 400,000 rupees exempt, only paid about 4.0 percent as taxes, he said.
"These workers are should also get used to paying these taxes," Jayasundera said. "If a person who earns more than 50,000 rupees a month says he cannot pay 4 percent tax, there is something wrong."
He said the issue at state enterprises arose in the mid 1990s when the government decided that workers in state enterprises should pay income taxes.
Later incomes other that state salaries of public servants were taxed. But in a recent budget all incomes were being taxed.
"Now politicians are also being charged tax. From last year, PAYE, members of parliament, ministers, senior officials all had to pay taxes," he said.
So from 2010 all public servants should also pay tax for several reasons. One is taxes have been simplified.
"There is no justification to keep public servants free from tax, when the private citizens pay taxes, and there is also no moral justification for us to administer taxes while we do not comply."
In Sri Lanka's state workers still get tax slashed cars, while common citizens outside the state have to pay high taxes on cars.
Politicians pay no taxes at all on their cars. There has been growing public anger at the discrimination, particularly after a recent hike in vehicle taxes.
Jayasundera however said the tax free cars given to politicians and state workers were a tradition.
"It is for ministers, senior public servants and public servants and the average public servants there is a classification. So that classification has been maintained," he said.
"After all this is basically the longstanding tradition and those traditions are maintained.
The tradition of giving tax free cars to the ruling class of elected politicians was also started under an administration headed by Sri Lanka's United National Party.
Provincial councilors were given tax free Mitsubishi Pajeros under Sri Lanka's then-president, Ranasinghe Premadasa, when parliamentarians bought BMWs.
To this day the particular Pajero is known as the 'Palarth Sabhar' (provincial council) model.
http://lbo.lk/fullstory.php?nid=1853444140
