Government started black market in the first place: Ananda Palitha

Colombo, Jan 3 (Daily Mirror)  - The government started the black market by imposing the new Value Added Tax (VAT) on January 01, Samagi Jana Balawegaya (SJB), affiliated Samagi United Trade Union Force (SUTUF) convener and spokesman Ananda Palitha said.

He told the Daily Mirror that the fuel price revision should be done by the end of December 31, according to the fuel price formula. But at 5 a.m. on January 1, the Power and Energy Minister announced the revised fuel prices.

Therefore, Palitha said that it was not the price revision but a collection exploiting the tax on fuel.

"Considering the purchased fuel stocks, the previous price, and the appreciation of the Sri Lankan rupee, the price of a litre of petrol should be reduced by a minimum of Rs. 15. The landing cost of a litre of 92 octane petrol at the Colombo port was Rs. 180, and according to the fuel formula, Rs. 15 should be reduced, and the retail price would be Rs. 331. The VAT should be added to the Rs. 331 after reducing the Port and Aviation Landing (PAL) cost," he said.

"The VAT should be calculated after the fuel formula calculation, and the fuel pricing formula starts on December 31. The VAT was added on January 1," he said. 

While refering to the domestic LP gas price hike, he said the proper way was not followed by the government when adding the VAT on gas.

Accordingly, the gas price should be reduced by Rs. 495, but it was increased by Rs. 685 while increasing the additional Rs. 190 from the price, he said.

"National Security Advisor, Sagala Ratnayake, recently told the media that the government will take severe action against those who spread falsehoods among the people about the VAT increase. But the government has started exploiting the tax in the first place," Palitha said.