The upcoming rise in Value Added Tax (VAT) on books, magazines, and journals starting January 1st is expected to escalate prices. The government justifies this move as a means to foster an educated and intelligent society. Opposition leader Mr. Sajith Premadasa criticizes the government’s decision, asserting that the increased VAT, set at 18 percent, will affect various essential items and tools required for professional training. He questions the government’s commitment to finding alternatives to VAT hikes.
Alternatively, Mr. Premadasa proposes recovering stolen wealth, enhancing tax administration efficiency, expanding the tax net, and eliminating concessions benefiting cronies. He argues that this VAT increase essentially acts as a “corruption tax,” adversely impacting citizens from children to youth. He condemns the government for degrading the lives of the populace, including the elderly.
The International Monetary Fund (IMF) is expected to decide on the second instalment today, with a 4-year loan facility granted quarterly. Mr. Premadasa criticizes the government for failing to meet the conditions set for the loan, citing corruption, fraud, and theft as hindrances to achieving state revenue targets.
Addressing rumors, Mr. Premadasa clarifies that the IMF did not specifically recommend a VAT increase; rather, the focus was on boosting state revenue. He accuses the government of stifling opposition voices during discussions on this matter.
Despite promises of a VAT debate by the leader of the house and the speaker, Mr. Premadasa alleges that the government halted the discussion to avoid facing reality. He contends that the government’s actions indicate a disregard for the people’s suffering.
Characterizing the government’s stance, Mr. Premadasa likens it to a husband displaying his deceased wife in the living room while revelling in ill-gotten gains. He emphasizes the government’s insensitivity to the populace’s hardships.
In a symbolic move, the government celebrated the passage of the VAT proposal with a party at the Temple Tree House. Mr. Premadasa commends those, like Mr. Roshan Ranasinghe, who opposed the VAT despite losing their ministerial positions. He accuses the ruling party, Pohottuwa, of celebrating the VAT increase as a Christmas party, juxtaposing the government’s festivities with the people’s inheritance of sorrow and pain. Mr. Premadasa urges a reconsideration of the VAT increase in light of the public’s hardship.
