News
BR says only Prez, PM and Cabinet can make him reverse move
Only listed companies targeted to raise Rs 114 bn
By Shamindra Ferdinando
Finance Minister Basil Rajapaksa has declared that his proposals to impose 25 percent retrospective tax surcharge on listed persons or companies that earned over Rs 2 bn 2020/2021 and increase VAT (Value Added Tax) to 18 percent from the current 15 percent wouldn’t be abandoned.
Appearing on ‘Salakuna,’ a weekly political programme telecast Monday night live on ‘Hiru’ FM Rajapaksa emphasised that he wouldn’t succumb to pressure from those affected by his proposals. Responding to ‘Hiru’ anchor Chamuditha Samarawickrema, the FM said only President Gotabaya Rajapaksa and Preme Minister Mahinda Rajapaksa and the Cabinet could intervene.
FM Rajapaksa said that he discussed the issue at hand with the chambers and didn’t object to the imposition of the surcharge for a year or two in view of the devastation caused by the pandemic, though they opposed haphazard changes in taxes.
However, those companies that hadn’t been listed in the Colombo Stock Exchange were left out of the tax net in spite of them, too, being cash rich, much to the surprise of the business sector.
Rajapaksa urged the media not to engage in a campaign to pressure the government to do away with the proposals.
Presenting the Budget for 2022, Minister Rajapaksa proposed (a) one-time tax surcharge of 25 percent on persons or companies with taxable income over Rupees 2,000 million for the year of assessment 2020/2021. The government expected to recover Rs 100 bn through this tax and (b) VAT on banks and financial service providers to be increased to 18 percent from 15 percent. Minister Rajapaksa stressed that this tax should be paid monthly from 01 January 2022 to 31 December 2022 and not passed onto customers. The government expected to raise Rs 14 bn through the tax.
When some Opposition members interrupted Minister Rajapaksa immediately after he announced the 25 percent surcharge on a selected group of companies, the FM said that he would like to see who represented the interests of the targeted companies.
The Inland Revenue Department says the following companies are likely to be levied proposed one-off tax surcharge: LOLC Holdings (Rs.23,075 mn), Commercial Bank (Rs 16,940 mn ), Ceylon Tobacco (Rs. 15,578 mn ), ExpoLanka Holdings (Rs. 14,830 mn), HNB (Rs 14,096 mn), Dialog Axiata (Rs. 12.034 mn), Ceylinco Insurance (Rs.8,880 mn), Sampath Bank (Rs.8,442 mn), Vallibel One (Rs. 8,117 mn), Sri Lanka Telecom (Rs.7,880), Hayleys (Rs.7,637 mn), Distilleries Company of Sri Lanka (Rs. 6,962 mn), LB Finnace (Rs. 6,807 mn), Royal Ceramics Lanka (Rs. 6,135 mn), Central Finance Company (Rs. 5,544 mn), Tokyo Cement Company (Lanka) (Rs.5,425 mn), People’s Leasing and Finance (Rs. 5,295 mn), Dipped Products (Rs.5,140 mn), National Development Bank (Rs. 5,117 mn), John Keells Holdings (Rs.5,026), Carson Cumberbatch (Rs.4,804 mn), Richard Pieris and Company (Rs. 4,680 mn), Melstacorp (Rs. 4,425 mn), LOLC Finnace (Rs.4,365 mn), Nations Trust Bank (Rs. 4,055 mn), Hemas Holdings (Rs. 3,621 mn), Bukit Darah (Rs. 3,541 mn), Cargills (Ceylon) (Rs.3,481 mn), CIC Holdings (Rs.3,132 mn), Haycarb (Rs. 3,047), SeylanBank (Rs. 3,039 mn), Lanka Walltiles (Rs. 2,960 mn), Nestle Lanka ( Rs.2,947 mn), DFCC Bank (Rs. 2,745), Ceylon Guardian Investment Trust (Rs. 2,721 mn), Citizens Development Business Finance (Rs.2,554), Lanka Tiles (Rs. 2,475 mn), Lion Brewery Ceylon (Rs.2,471 mn), Singer Sri Lanka (Rs.2,452 mn), Ceylon Cold Stores (Rs.2,334 mn), CT Holdings (Rs.2,288 mn), Chevron Lubricants Lanka (Rs.2,225 mn), Commercial Leasing and Finance (Rs. 2,216 mn), Access Engineering (Rs. 2,173 mn), Teejay Lanka (Rs.2,139 mn), Pan Asia Banking Corporation (Rs.2,048) and Commercial Credit and Finance (Rs, 2,005).
Former banker and Samagi Jana Balavegaya lawmaker Eran Wickremaratne strongly opposes the budget proposal. Asked for his stand on FM Basil Rajapaksa’s move and whether the latest proposal is similar to the tax imposed by the UNP but not implemented, MP Wickremaratne told The Island: “The private sector is not averse to paying taxes. They want a predictable tax environment so that they can plan and execute business plans. A one-off tax is arbitrary and unpredictable. It destroys business confidence. It weakens planning as well as foreign investors’ confidence in the country.”
Referring to the doing away with one-off super gains tax declared in 2015 but never implemented, SJB lawmaker Dr. Harsha de Silva stressed that two wrongs did not make a right.
Sources said that the cash strapped government could have targeted unlisted companies too. However, the decision makers had conveniently restricted the targeted group from among the listed group.
Responding to ‘Salakuna’ queries, Minister Rajapaksha strongly defended sharp tax cuts imposed immediately after the change of government in 2019. The minister said that sharp reduction of taxes saved many private companies, including the one that employed the ‘Salakuna’ team of journalists. The minister said so when Chamuditha Samarawickrema asserted that the government caused unnecessary revenue issues by reducing a range of taxes amounting to well over Rs. 500 bn.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
