National Movement for Consumer Rights Protection urges govt to plug revenue drains through Budget

by Saman Indrajith

The National Movement for Consumer Rights Protection yesterday called on the government to think out of the box and set up new mechanisms through the upcoming budget to rope in illicit and unlicensed liquor, tobacco businesses and thereby prevent losses to the tune of Rs 180 billion a year to government coffers.

Addressing the media at the Center for Society and Religion in Maradana yesterday, President of the NMCRP, Ranjith Withanage said that it was usual for the government to introduce new taxes on liquor and tobacco through the annual budget to increase government revenue. “But in reality when the taxes of those items increased, the majority would move for cheaper products––the illegal tobacco and illicit toddy. Owing to the illicit liquor and tobacco, the government loses over Rs 180 billion a year. We hope this government will be able to plug this drain.

“We look at this problem from the perspective of the consumers. On coming 17, the government is to present a new budget which is expected to provide relief to people. In order to achieve the economic prosperity the government should think of bringing about new policies. It should strengthen the regulation mechanism of using Excise and Police Departments to enforce laws strictly against those who have been increasing their income whenever the government jacks up the prices of alcohol and tobacco.

“It is estimated that owing to illicit liquor and tobacco the government loses around 100 billion rupees and because of illicit toddy around 80 billion rupees a year.”

He said that there are other areas the government should pay its attention to if it wanted to increase the government revenue. “For example, high ranking officials of the Ceylon Electricity Board (CEB) and its engineers are using public funds to pay their income tax. The CEB has decided to pay the direct tax – the taxes paid when the high ranking officials and the engineers earn their income, again. That had to stop, he said, adding that it caused a loss of about Rs 800 million loss to the state coffers.

Withanage said that there were reports to the effect that companies operating under the provisions of Betting and Gaming Levy Act operated not paying taxes to the government. “As per the laws the owners of these establishments should pay taxes separately for each of their centres but they pay only for one such centre each. We do not think that the tax collectors are not aware of this. We hope that this year’s budget would rectify these errors.”

He said that NMCRP had submitted a set of proposals to the government, calling for suggestions from the public at the time of preparing budget proposals and they had included proposals on how the government should increase its revenue by streamlining tax collection.