Instead of cutting taxes, the government’s proposal to increase them sparks fears of rising everyday costs, critics warn
Catholic priests in Sri Lanka joined rights activists to launch a nationwide signature campaign to force the government to slash excessive taxes on essential food, medicines, and school supplies.
On Feb. 22 in Negombo, a Catholic stronghold near the national capital Colombo, dozens of Christians and people of other faiths signed up for the campaign.
The campaign also seeks the repeal of the controversial Prevention of Terrorism Act (PTA), which activists slam as a repressive tool to muzzle dissent and curtail freedom of speech.
Rights activist and Catholic priest Father Jeewantha Peiris said people have been suffering due to an increase in Value Added Tax (VAT) on essential goods and criticized the government of President Anura Kumara Dissanayake for failing to curb taxes in the latest national budget.
“People are struggling to cover their living expenses, and the government must immediately remove the taxes on essential commodities, as promised during the election campaign,” Peiris told the gathering in Negombo on Feb. 22.
The priest also hit out at the PTA and the government’s apparent reluctance to repeal it despite strong criticism.
“The government promised to fully repeal the PTA and avoid repressive laws, but now the parliament suggests amending it or creating an anti-terrorism bill, despite existing laws being enough, often used to suppress public demands for justice,” he added.
The protesters alleged Dissanayake failed to keep the promise of removing VAT on essential goods as millions continue to struggle amid inflation.
In the latest national budget, the government proposed imposing 18 per cent VAT up from 15 per cent, reportedly under pressure from the International Monetary Fund (IMF) under the bailout agreement for recovery from a debt crisis, triggered by excessive state loans amounting estimated US$83 billion.
The nation’s worst economic crisis in 2022 sparked nationwide protests, forcing the ouster of President Gotabaya Rajapaksa and his powerful political dynasty.
The consequential bankruptcy forced the government of former President Ranil Wickramasinghe to strike a bailout deal with the IMF.
The bailout package helped tame the country’s extremely high inflation, dropping from a staggering 70 per cent in 2022 to 5.9 per cent, media reports say.
However, a sharp rise in prices of daily essentials including school essentials for students such as books, shoes, school dresses, food, and transport has also been reported.
Sunimalee Rajapakse, a Catholic mother from Negombo with a child in grade one, said that they’ve had to drastically change their shopping habits due to rising costs.
“Previously, we bought everything from one store, but now we visit several to find discounts. It’s hard to afford branded items schools request, especially while looking for the cheapest, lowest-quality options,” Rajapakse told UCA News.
She regretted that she is being forced to spend about 13,000 rupees (US$44) for books for one term for her child this year, compared to 7,000 rupees in 2023.
Jasintha Silviya, another Catholic mother of three from Negombo, said parents like her are struggling.
“Many have only been able to buy half of the required supplies such as medicines, essential food items, and school supplies, and some children have already stopped attending school because their parents can’t afford the costs,” Silviya told UCA News.
Source: ucanews.com
