The main opposition UNP yesterday said it was beyond reasons as to why the government slashed import duties on luxury items instead of reducing taxes on the imports of essential items such as milk powder, canned fish and domestic gas consumed by the ordinary people.
Addressing a news conference, UNP General Secretary Tissa Attanayake said the people were reeling under the high living costs.
“Recently, the government increased wheat flour and gas prices saying fluctuations in the world market warranted it. Milk powder importers have asked for a price hike. Then, we cannot understand why the government brought down taxes on vehicle imports. For whose benefit was it done?” he asked.
The General Secretary said this had been done on a request by the IMF.
UNP National List MP Dr. Harsha de Silva said the government had done this to increase its tax revenue, but the move would have dire consequences on the economy.
“Now, more and more vehicles and luxury items will be imported. When there are more import volumes, the government can increase its tax revenue. In this situation, the demand for US dollars will also increase for the import transactions. Eventually, the rupee will drop against the dollar further,” Dr. de Silva who is an economist said.
He said, “Sri Lanka is likely to lose the GSP + concessions on its exports to the European Union. Further, the purchasing power of the EU countries has declined today due to the recession. In such a situation, the Sri Lankan government has taken this decision to devalue the rupee.”
He also asked why the government could not exempt the import duty of Rs. 85 on a kilo of tinned fish in the interest of ordinary people.
Commenting on the performance of the Colombo Stock Exchange, he said that foreign investors do not transact in it as such nowadays.
Asked about the latest Cabinet decision to exempt taxes on the imports of foreign currency notes, he said that he had no idea about it at the moment.
“I have no idea in this regard. Who is importing dollar notes in bulks? Anyway, this is a country where even money laundering takes place,” he said.
dailymirror
Addressing a news conference, UNP General Secretary Tissa Attanayake said the people were reeling under the high living costs.
“Recently, the government increased wheat flour and gas prices saying fluctuations in the world market warranted it. Milk powder importers have asked for a price hike. Then, we cannot understand why the government brought down taxes on vehicle imports. For whose benefit was it done?” he asked.
The General Secretary said this had been done on a request by the IMF.
UNP National List MP Dr. Harsha de Silva said the government had done this to increase its tax revenue, but the move would have dire consequences on the economy.
“Now, more and more vehicles and luxury items will be imported. When there are more import volumes, the government can increase its tax revenue. In this situation, the demand for US dollars will also increase for the import transactions. Eventually, the rupee will drop against the dollar further,” Dr. de Silva who is an economist said.
He said, “Sri Lanka is likely to lose the GSP + concessions on its exports to the European Union. Further, the purchasing power of the EU countries has declined today due to the recession. In such a situation, the Sri Lankan government has taken this decision to devalue the rupee.”
He also asked why the government could not exempt the import duty of Rs. 85 on a kilo of tinned fish in the interest of ordinary people.
Commenting on the performance of the Colombo Stock Exchange, he said that foreign investors do not transact in it as such nowadays.
Asked about the latest Cabinet decision to exempt taxes on the imports of foreign currency notes, he said that he had no idea about it at the moment.
“I have no idea in this regard. Who is importing dollar notes in bulks? Anyway, this is a country where even money laundering takes place,” he said.
dailymirror
