When thieves punish their victims

Monday 17th October, 2022

Thieves live in fear of punishment in other countries, but here it is the victims of theft who have to face punitive action. Having stolen huge amounts of public wealth and bankrupted the country, the perpetrators of economic crimes, in positions of power, are now all out to recover losses at the expense of the people, who have had to pay for others’ sins by way of massive increases in tariffs and taxes. The proposed tax increases, if implemented, will drive many people to suicide.

Taxes must be paid, but they must be reasonable. The ill-conceived tax increases that have incensed the public beyond measure make one wonder what would happen if the leaders of the Rajapaksa-Wickremesinghe government were to run a dairy farm. They would slaughter all cows instead of milking them! In handling vital affairs of the state such as taxation, they have followed a zigzag course like drunkards over the decades; they have meddled with taxation and politicised it in such a way that state revenue has dropped drastically and the current administration has chosen to squeeze the taxpayers dry. The government seems to consider it an offence for one to keep one’s nose to the grindstone and increase one’s income. Adding insult to injury, Health Minister Keheliya Rambukwella has reportedly said anyone who earns more than Rs. 100,000 a month is not innocent! He has apparently neglected his mental health.

The heartless tax hikes will affect everyone except politicians who are above the taxman and do not have to declare their assets. Many medium and small-scale businesses are bound to go belly up if the proposed tax increases are implemented. Entrepreneurs and workers are up in arms, but the government does not care. Among those who will suffer a crippling blow at the hands of the taxman are exporters and the IT industry, which has the potential to be one of the mainstays of the economy, if given state assistance.

Many Sri Lankan youth are teleworking for overseas companies without leaving the country; they help bring in considerable amounts of much-needed foreign exchange. Their monthly earnings may seem high, but their real income has not increased as such if the inflation rate is factored in. Inflation has surged to more than 70%, and food prices have soared by over 84.6%, compared to a year ago, according to media reports based on official data.

The government is exploiting the public while doing nothing to curtail waste and corruption. It continues to spend huge amounts of public funds to maintain an unproductive public sector, which is inefficient, corrupt and overstaffed; there are as many as 1.5 million state workers although the country can manage with about one third of them. Besides, people have to maintain as many as 8,680 elected representatives — 225 MPs, 455 Provincial Councillors, and 8,000 local government members. The Provincial Councils do not serve any purpose, and the question is why the countries that pressure Sri Lanka to retain them are not asked to bear the cost of running these institutions. The number of MPs can be slashed, and the country does not need more than 30% of the local government members. The members of Parliament, which controls public finance, neglect their legislative duties and functions; they have the audacity to claim that they had not been aware that the country was bankrupt until an official announcement was made to that effect!

The Opposition’s bark is worse than its bite where its reaction to the draconian tax laws is concerned. Unless the government is prevented from exploiting the public in this manner, it will be emboldened to jack up taxes further; at this rate, people might have ‘breast tax’, ‘dog tax’, etc., to contend with. While making grand preparations to celebrate the 75th Anniversary of ‘Independence’, next year, the government is trying to take the country back to the colonial era with its exploitative tax policies.

It is hoped that the Opposition and trade unions will go flat out to force the government to reconsider the proposed tax increases and reveal how it proposes to curtail waste, eliminate corruption and, above all, recover the stolen public funds. Let the government be warned that it is testing people’s patience and creating conditions for the next wave of popular uprisings, which will make the previous ones look like mere ripples in a puddle.