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Last Updated : 2024-05-09 17:30:00
20 December 2023 05:41 pm - 41 - {{hitsCtrl.values.hits}}
Colombo, Dec. 20 (Daily Mirror)- Sri Lanka Podujana Peramuna (SLPP) leader Mahinda Rajapaksa, in a statement, said that President Ranil Wickremesinghe has successfully restored law and at this moment, and hence the primary duty of the SLPP is to ensure a stable government until the next national elections.
Former President Rajapaksa who elaborated on the tax policy said every member of the public should pay special attention to the tax policy and the past economic practices of the political party they vote for.
“As elections draw closer, once again we see attempts to hustle people blindly and unthinkingly in various directions through ramped up propaganda and social media hysteria," he added.
Around 40 professional associations and trade unions representing vital sectors of the economy and the public services have been agitating for a reduction in income taxes for many months. In the meantime, the high tax burden has precipitated an exodus of educated and highly trained professionals from the country giving rise to a new crisis. Following increases in the VAT through the budget for 2024, tax policy is set to become a major political issue in 2024.
The call to reduce taxes is based on solid economic principles. When taxes are low, both individuals and corporations have more money to spend and invest and this acts as a driver of the economy. Low taxes was a cornerstone of my government’s policy and it made a major contribution to the unbroken nine year economic boom that this country experienced between 2006 and 2014.
So as not to burden the people with taxes, my government of 2006-2014 restricted the overall year on year increase in government tax revenue to around Rs. 100 billion a year. Through careful economic management, my government reduced the debt to GDP ratio from 90% at the end of 2005 to 69% at the end of 2014 thus ensuring the feasibility of the low tax regime.
However, over the past several years there have been well-funded propaganda campaigns promoting a headlong and mindless opposition to everything even remotely associated with the name ‘Rajapaksa’ including the low tax policy. In order to blacken the very concept of low taxes, some even claimed that the Rajapaksa-led governments reduced taxes to help cronies. That is an outright lie. Tax exemptions can be granted only under laws like the Board of Investment Act and the Strategic Development Projects Act in order to attract investors for specified projects.
After 2015, the low tax regime was rejected in favor of a high tax regime. Unsurprisingly, Sri Lanka’s growth rate declined precipitously after 2015 ending up at 0.2 below zero by 2019. Due to bad economic management, the period from 2015 to 2019 saw an increase taxes while at the same time experiencing a precipitous increase in foreign debt. When I was voted out in January 2015, the outstanding International Sovereign Bond debt was only USD 5,000 million. The Gotabaya Rajapaksa government of 2020-2022 paid off USD 2,500 in outstanding ISBs which means that only USD 2,500 million in ISBs now remains from my era.
Over USD 10,000 million in new International Sovereign Bonds were taken between 2015 and 2019. Hence we still have an outstanding ISB stock of USD 12,500 million. It was this USD 10,000 million in new ISBs taken between 2015 and 2019 that broke the back of our economy. When the Covid-19 pandemic struck Sri Lanka a few months after I became Prime Minister at the end of 2019, we wrote to the IMF in March 2020 asking for emergency assistance. The IMF wrote back saying that our debt levels disqualifies us from their emergency relief package.
They then proposed a raft of conditions that would qualify us for IMF assistance but those conditions would have made it impossible for us to face the Covid-19 threat in the manner that we did in 2020 and 2021. The present government is now implementing stringent conditions as part of an IMF programme. Thus one thing led to another, finally resulting in a situation where we now see top professionals holding multiple university degrees and professional qualifications agitating on the streets, demanding a reduction in taxes.
The SLPP which I lead is a part of the government. However the present Head of the Government and Head of State is the leader of a different political party with different policies. In a situation where this country was faced with complete anarchy, Parliament elected a President to serve the remainder of former President Gotabaya Rajapaksa’s term. The new President successfully restored law and order to the country. He is now directing government policy as the Executive President. At this moment, the primary duty of the SLPP is to ensure a stable government until the next national elections.
In future, every member of the public should pay special attention to the tax policy and the past economic practices of the political party they vote for. As elections draw closer, once again we see attempts to hustle people blindly and unthinkingly in various directions through ramped up propaganda and social media hysteria. Whatever decision the people make at the next elections should be based on rational thinking, proper facts and correct data. We are still living through the consequences of January 2015 and this country cannot afford another mistake like that again,” he said.
Lion Wednesday, 20 December 2023 05:54 PM
Government should be stable for my safety and the safety of my children and it is nothing to do with the country.
Younger Thursday, 21 December 2023 11:54 AM
Politicians under your watch and others are the cause of this disaster. New younger
Wiseman Wednesday, 20 December 2023 06:11 PM
Yes, we still remember how you attempted to hustle people blindly and unthinkingly in direction of Galle Face
Sam Silva Wednesday, 20 December 2023 06:28 PM
Yes Ranil restored law by shielding the crooks like you. You have done enough damage to our country and planing to continue. Shameless and disgraceful person still in the spotlight.
Lakmal Kahawela Wednesday, 20 December 2023 06:32 PM
Talking about tax policy ? does Johnston Fernando and Dhammika Perera obey these tax policies
Gon mina and sons Wednesday, 20 December 2023 06:44 PM
This man looks like he is embalmed.
Ravi Hulugalle Wednesday, 20 December 2023 06:47 PM
Can see he is suffering from dementia from his blank expression.
Voter Wednesday, 20 December 2023 07:24 PM
This man's last days in Parliament not because he looks a weak Patient but also because he will be rejected by the voters at the Election.
Younger Educated Politicians Needed Wednesday, 20 December 2023 07:25 PM
If it was ensured all politicians were working for the people over the past years, there will be stability currently. No long term planning using professionals
johan Wednesday, 20 December 2023 09:48 PM
What is the meaning of stable. Load all robbed money to people's shoulder
Bandu Wednesday, 20 December 2023 11:49 PM
No, Wickremesinghe has only successfully restored your immunity to be prosecuted for time being. But we hope time will come for law to take its course.
Patcitz Wednesday, 20 December 2023 11:51 PM
Your Excellency having people's power, which the US knows better than us before leading a PLOT against His Excellency Gotabaya Rajapaksa, can not be defeated in any way, therefore, once again the US steps into play the same role, fabricating potential CORONA tactic to destabilize the elections set for next year, that will most probably not be conducted as announced.
Pantha Kumaran Thursday, 21 December 2023 12:35 AM
MR please understand you and your immediate family members made Sri Lanka bankrupt. This Ranil man is trying his best to revive the country. I don't like this Ranil man personally. But I must admit he is better than you lot.
L Jaya Thursday, 21 December 2023 12:59 AM
He was the guy who destroyed the stability of government at every level. These are wedi bhana. Why do things get reported? Irrelevant stuff and no one give a damn
political bribery Thursday, 21 December 2023 01:24 AM
You and your clan will do a great favour for the man on the streets by keeping away from the "political and bribery leach" attitude you all have shown and brought this country to its knees. PLEASE KEEP AWAY FROM POLITICS HEREAFTER_ THANK YOU.
Rohini Wijetilleke Thursday, 21 December 2023 02:17 AM
The SLPP LEADER has proved beyond reasonable doubt his efficiency ( with the able assistance from the clan).Did he not understand that a boat loaded on one side has no stability and will sink for good.
Ram Thursday, 21 December 2023 04:45 AM
Mahinda, You talk about government stability or your stability without any hiccup/investigation as any investigation may place you in a soup
Adwani Thursday, 21 December 2023 05:07 AM
Stability only till next election, after that What? Corruptions, Stealing Public Funds, Borrow more
Shadow president of Uganda Thursday, 21 December 2023 05:26 AM
As elections draw closer, once again I have packed my bags and will be spending some time in my bunker at the Trincomalee base.
Abd Thursday, 21 December 2023 06:03 AM
Everyone knows the current economic situation is not a fault of public, but due to uninterrupted massive looting of politicians, it’s the reason of forcibly tax people to cover their loot, under this condition it’s obvious people’s uprising would be a certain, so MR wants to grateful to RW to lease forces successfully and advise his equally corrupt supporters to do so, till deposit looted money in secure places
D S de Silva Thursday, 21 December 2023 07:33 AM
Sure, Wicktamasighe has a done a great job in protecting the Rajapakse's
Sambo Thursday, 21 December 2023 07:54 AM
Or better to say he has kept us safe from our stolen assets.
Terrence K Thursday, 21 December 2023 08:02 AM
OH Why are you talking in a forked tongue which is your modus operandi as one of the Greatest Pretenders. At the recent increase of the VAT weren't you one who voted on behalf of the SLPP. Now you are shedding crocodile tears on behalf of the public to fool them at the elections as done to the 6.9mn in the past!!!!!!
Nilmini Welivita Thursday, 21 December 2023 08:35 AM
Sri Lanka must hold the record for the number of billionaire who are partially retarded.
Seegiri Palanthure Thursday, 21 December 2023 08:37 AM
What Naki Myna can do other than control the unelected man! No one respects you other than Pin Gonas and Wal Aliyas and Kaputas, and
Bandu Thursday, 21 December 2023 08:38 AM
As usual duty to him is to himself and party to continue to loot while duty for is us for the country - so do not safeguard government for our sake.
Mohomed Thursday, 21 December 2023 08:47 AM
Old age hysteria. People are not fools. No wonder if President dissolve the parliament at any moment.
Sokrates Thursday, 21 December 2023 09:40 AM
The primary duty of the SLPP is to ensure that all crooks and criminals are fired from the party, government, parliament and all public offices, including yourself and your wicked clan, in order to have a chance in the next elections.
Nimal Thursday, 21 December 2023 09:44 AM
Whose it going to be? Mr. Bean or Ali Baba
Roshanaly Thursday, 21 December 2023 10:09 AM
SLPP duty is not to insure stability but to safeguard you and your MPs from going to jail.
True Lankan Thursday, 21 December 2023 12:36 PM
on what basis these crooks still trying retrieve the power? please stay at home and rest, I think it is time for you to.
Jonklaas Thursday, 21 December 2023 04:45 PM
MR's Statement has been well prepared by Ajith Niwaard Cabraal the main architect of the country's financial crisis.
Hampada Gonan Thursday, 21 December 2023 05:02 PM
Keep all Hora Ali, Hora Kaputa, Hora Gobbaya, Hora Kappama, Hora Paga Man active until you die! That should be your DUTY to SLPP!
Citizens Thursday, 21 December 2023 05:13 PM
Till all you guys are freed from all cases and you are prepared to face any elections is also a joke and this is stability you are looking for and not reducing the vat.
PSYCHIATRIST Thursday, 21 December 2023 06:43 PM
HALLUCINATING IS BECOMING CONTAGIOUS., TO SAY THE LEAST. PSYCHIATRIST
Buddhist Thursday, 21 December 2023 07:28 PM
Is this because Rajapaksa family will get more time to rob more?
GHT Friday, 22 December 2023 01:13 AM
It was not the Rajapaksas who destroyed the country, but the US did it with MUTT Ranil's support.
Digana Wansapala Friday, 22 December 2023 03:46 AM
Making a special ward at Mental hospital for this Naki myna! He is suffering from Dementia - and memory loss! Many more to follow - RW - Kaputa - Gobbaya - Pambaya - Gon Putha etc!
UAli Friday, 22 December 2023 06:57 AM
Anyone of the country including you and children bound to forward about their wealth, are you genuinely doing it,
Matara man Friday, 22 December 2023 07:07 AM
Can you ask someone to prepare a statement similar to this,challenging your friend, ex president MS on his revelations on misappropriation of Nilwala river project loan,there,he accusing you stole whole loan and carefully deposited in name of niece Nirupama till it exposed by Pandora papers,we decided not to vote you if you not forwarded your innocence
Ravana Friday, 22 December 2023 12:58 PM
For a number of times my family voted for RW, only to see him get chucked out. We never gave up hope but this time he came on his own and totally changed our view of him. He is just saving these crooks, in vain of all those votes.
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