Mr. Pubudu Jagoda, Secretary of Education of the Frontline Socialist Party, said that the government has increased the tax revenue by 51% instead of taxing the rich and taxing the common people.
He also said:
“The government has taken several decisions that adversely affect the people. In 2022, these rulers increased the VAT rate from 8% and 12% to 15%. Now it has been decided to increase VAT rate to 18% from January 1, 2024. Not only that, it has also been decided to levy VAT on a number of items that are not currently subject to VAT. Sri Lanka Latest News
All milk powder including rice, rice flour, wheat, wheat flour, bread, baby milk powder, eggs, spices, mineral oil, mobile phones, essential services for education, essential services for public transport, telecommunication services are all subject to VAT. Due to this, the prices of all these goods and services are going to increase.
When the people are currently under pressure of not being able to pay due to the increase in electricity charges, it has been decided to revise the electricity bill for 3 times within 3 months. At first it was said that the fees will be revised twice a year. It was increased three times this year. But now the fee hikes are going to be done four times a year.
It has also been decided to increase the price of fuel. Even if the price of 92 octane petrol is reduced like a blindfold, the price of all other fuels raised along with all other goods and service charges. Especially due to the increase in the price of diesel, things like the increase in bus fares are further oppressing the people.
The Department of census and Statistics stated in 2019 that Rs. 6966 needed by a person live for a mont. Now in 2023, the required expenditure per person is Rs. 16207. It has increased by 132.65% It is difficult to bear this in a situation where no one’s income has increased.
According to the World Bank criteria, the poor are those whose income is less than 3.65 dollars or 1332 rupees per day. It was reported that the number of people considered poor in Sri Lanka was 13.1% in 2021. In 2022, that amount had grown to 25.6%. 2023 is not a year yet so it is impossible to say numerically. However, according to a research conducted by Dr. Wasantha Athukorala of the ‘LearnAsia’ institute, it was revealed that within 2023, 40 lakhs who were not considered poor before will join the ranks of the poor. Going by what’s going on now, this is set to rise dramatically by the end of 2023. It can be said with certainty that when VAT is increased and fuel prices and electricity charges are increased, the living conditions of the people will become extremely difficult and the majority of the population will be poor in 2024.
This predicament worsens when fuel and electricity rates go up. Because, with the increase in electricity charges, everything from plain tee goes up. When the price of fuel increases, the price of everything including rice, vegetables and fish increases.
Like the man who fell from the tree knocked by the bull, everything is destined to become unaffordable highs.
According to a report presented by the United Nations Development Programme, UNDP under the ‘Multidimensional Vulnerability Index’, 55.7% of Sri Lanka’s population has fallen into the poor. More than half of the people in this country are poor.
If someone thinks, drink water without eating, that too is impossible. 35% say that more than 1/3 of the total population do not have daily water facilities. Now due to the increased water charges, this is going to increase even more. Former Health Minister Keheliya said in Parliament that 9 lakh children and women in this country are suffering from acute malnutrition. Now this government is in such a situation that these taxes are imposed on the common people.
Bandula Gunawardena proudly stated that the tax revenue in 2023 increased by 51% compared to 2022.
What tax is this? We know about two types of taxes. Are capitalists paying taxes from their companies? Or the taxes paid by the common people? According to the Department of Inland Revenue, the value of unpaid taxes from direct taxes paid by industrial companies is 904 billion rupees. It is in the report of the COPE committee that 270 billion in taxes that were willing to be paid have not been collected from the tax payers without any appeal. Meanwhile, in an inquiry conducted by the Union of Young Journalists, it was reported that 572 billion rupees have been cut from the tax payable by monopoly companies.
While common people pay taxes from lentil seed, tycoons write off unpaid taxes. How did the Parliament and the Cabinet take this decision when the common people were living with difficulty?
This is why we are asking the working people of this country, all the oppressed people, to come forward to end this oppressive rule, to organize, to create a people’s rule from the needs of the people, to build a people’s power, to come forward to take control of the people for the sake of the people’s priorities. The vanguard socialist party is ready to work with utmost dedication to win those people’s goals.
