politics isnt my cup of tea but i find the recent issue of the court order, ordering the reduction of petrol prices to Rs.100/litre and the govt's response..pretty pathetic to say the least!!!! and i found this article on lbo which pretty much sums up the mood here! btw the sunday newspapers really had a go at the govt!

Sri Lanka political hypocrisy on taxation condemned


Dec 21, 2008 (LBO) - The lavish perks enjoyed by Sri Lankan politicians who get tax-free benefits, while preaching 'patriotism' to the common man, have been slammed by the island's influential Sunday weeklies in one voice, as the government dragged its feet over a court order to cut petrol taxes.
Sri Lanka's Supreme Court ordered the government to cut taxes and reduce the price of petrol from 122 to 100 rupees a litre at a time when the international wholesale price of petrol is only about 25 rupees a litre.

Court said taxes of 180 percent were too high and profits were also too high. By Sunday only private-listed Lanka IOC had cut prices, while state-run Ceylon Petroleum Corporation awaited an order from the cabinet of ministers.

State Exploitation

The government had traditionally over-taxed petrol claiming it was used by the 'rich' while selling diesel at a lower price.

The Sunday Times newspaper in a hard-hitting editorial titled 'Exploitation by State' recalled that the country's constitution held that "the exploitation of man by man or by the State" should be eliminated.

"This week, the Supreme Court gave tangible meaning to those words with an order to the State to stop exploiting the public under whatever guise or ruse," The Sunday Times said.

"To say that petrol is used only by the rich, and therefore to justify the exorbitant taxes and levies imposed is both unfair and untrue.

"Those who use petrol include trishaws - both driver and passenger; motorcycles and mo-peds; and re-conditioned cars which are not the vehicles of the wealthy."

While petrol is used mostly by the poorer people, diesel is used by business, and politician who import luxury diesel guzzling SUVs tax-free, as well as the super-rich who import diesel-engined vehicles by paying very high import duties.

But diesel is sold at 80 rupees a litre, though the product costs about 30 percent more than petrol to import.

Patriotism without Sacrifice

In dragging their feet over cutting petrol taxes, government politicians had tried to say that some elements were trying to weaken state finances and hurt an internal war, a familiar refrain to justify state excess.

"The way the government acted after the court ruled that petrol must be sold at Rs. 100 a liter was, to say the least, pathetic," The Sunday Island said in an editorial.

"Inevitably, the 'war cry' has also been heard loud and clear. How are we to prosecute the war against the LTTE terrorists if funds for the purpose are not available?"

"Can it simply keep repeating the 'war to be fought' mantra for all its sins?," asked The Sunday Times.

"Does it not have to make sacrifices itself? These are but some of the questions that will be thrown at the Government by the public."

Earlier this year tens of thousands of state-workers were given a chance to buy tax-slashed vehicles, sharply reducing state revenue. There were no mention about patriotism or the war at that time.

In the past few years unprecedented salary hikes of up to 20 percent a year had been given annually to state workers. Now more than 50 percent of all taxes go to state salaries and pensions.

But Sri Lanka's politicians themselves do not pay taxes on their salaries and perks.

In stark contrast to the motor-cycle owner who uses his own vehicle to get to work using over-taxed petrol, state workers get subsidized 'season tickets' to travel on loss-making state rail and bus services.

Since 2004, the government has also printed money insidiously stealing from all and sundry through 20 percent inflation, particularly the poor and old people whose savings have been secretly confiscated through negative real rates.

Sri Lanka has more than a 100 ministers who The Sunday Island said enjoy perks even leaders of developed countries do not.

"The people have got cynical about the way that these lovers of the country shower the country’s resources on themselves with perks that power wielders even in affluent developed countries do not enjoy."

Gluttony

"On the other hand, it is the members of the out-sized Cabinet and favourite bureaucrats that ride in limousines with escort vehicles for which the public also has to pay in addition to the fuel for their own vehicles," the Sunday Times added.

"The Government has been importing bullet-proof and other fuel-guzzling vehicles in recent months, the most recent being for a three day SAARC [South Asian Association for Regional Co-operation] summit."

The Sunday Times also referred to Mihin Air, a pet project of the Rajapaksa administration that has become a symbol of the government's profligacy.

The budget airline, which had already cost the people more than three billion in losses has been allocated a further 6 billion rupees in the most recent budget.

"Who is footing this bill? The already economically battered public is," the newspaper said.

The Sunday Island added : "Those who proliferate ministries faster than rats breed, creating over 100-strong jumbo cabinets to ensure their political survival, whiz off abroad at the drop of a hat, pay themselves (or their daughters) Rs. 100,000 rent allowances and engage in extravagances and profligacy they would (or could) never indulge in out of their own pockets can hardly talk about blocking tax revenues for the very good reason that they appropriate far too much of such revenue to give themselves a jolly good time.

"If they do, the taxpayers will roll on the ground laughing themselves silly."

The fiery Sunday Leader was even more scathing.

It referred to the country's prime minister "rushing about the country wailing that no one who loved Sri Lanka had a right to block taxes because the government needs money to develop the country and to protect it from terrorism."

"Touching," the newspaper's editorial said cynically. The Sunday Leader said the current administration had "dug their paws into the Treasury's largesse and helped themselves to gobfulls of loot."

"Thus it is that the President and his ministers trot the world's fleshpots, staying in super-luxury hotels with entourages of hundreds of relatives and attendant clowns and cronies, all at massive expense to us the people.

"It is how the government justifies maintaining more than 100 ministers, when India, with a population 50 times our own, gets by with just 30, and even the mighty United States has just 15."


http://www.lbo.lk/fullstory.php?nid=878966146

the issue has reached quite a number of papers abroad as well...here's one from the states, the Baltimore sun
http://www.baltimoresun.com/business/nationworld/wire/sns-ap-as-sri-lanka-oil-crisis,0,3481854.story

btw i cant seem to change the title of the thread..made a small mistake, wanted to say "no hateful comments" but somehow didnt! admin can u please change it if it is possible? :)

Please let us not ruin the forum with politics, it's banned for a reason...

oops totally forgot!!! :(:( let's jus change the topic to the fuel crisis or smethin...sorry guys!:(

yeah lets keep it politics free..

Court said taxes of 180 percent were too high and profits were also too high. By Sunday only private-listed Lanka IOC had cut prices, while state-run Ceylon Petroleum Corporation awaited an order from the cabinet of ministers.

State Exploitation

The government had traditionally over-taxed petrol claiming it was used by the 'rich' while selling diesel at a lower price.

We are pretty much a welfare state. With free education, heath care and all the subsidiaries given to farmers and fisherman and the like, the government needs to come up with money to from somewhere.

Taxes on gas, electronics, alcohol etc. is where they drum up a a lot of money, so just cutting taxes on gas isn't going to help. We need larger scale reforms, and that's not going to happen any time soon.

In the past few years unprecedented salary hikes of up to 20 percent a year had been given annually to state workers. Now more than 50 percent of all taxes go to state salaries and pensions.

That's kind of a ridiculous statement. Inflation has been close to 20%. If salaries weren't increase to match that, people would end up starving.

Hey Gamarala, fair points, but why in the first place do we need to have such a bloated, inefficient public sector...which eats up all the prosperity and income of the rather efficient and prolific private sector through bizarre taxation...socialism is a good concept, but it can not be extreme, becoming more like Communism which as we all know is harmful to countries, just remember the USSR...and the thing with petrol being for the "RICH" is also slightly outdated, don't you think? Unless over 200,000 vehicle users or more are considered rich, that in term fits with our stylish convoys and private presidential airline, better than in developed countries I guess...so we don't really have to worry about car taxes of 300% and "normal" taxes of 100% on practically anything we import...and then people will say we have local substitutes which are less costly, but then sadly protectionism hasn't really helped local manufacturers to improve their competitiveness and quality...fiscal policy should be intact, but not in the controversial and negative scales in which it is currently utilised, spoiling the already difficult lives of the vast majority of the people living in Sri Lanka!!!

Hey Gamarala, fair points, but why in the first place do we need to have such a bloated, inefficient public sector...which eats up all the prosperity and income of the rather efficient and prolific private sector through bizarre taxation...socialism is a good concept, but it can not be extreme, becoming more like Communism which as we all know is harmful to countries, just remember the USSR...and the thing with petrol being for the "RICH" is also slightly outdated, don't you think? Unless over 200,000 vehicle users or more are considered rich, that in term fits with our stylish convoys and private presidential airline, better than in developed countries I guess...so we don't really have to worry about car taxes of 300% and "normal" taxes of 100% on practically anything we import...and then people will say we have local substitutes which are less costly, but then sadly protectionism hasn't really helped local manufacturers to improve their competitiveness and quality...fiscal policy should be intact, but not in the controversial and negative scales in which it is currently utilised, spoiling the already difficult lives of the vast majority of the people living in Sri Lanka!!!

Yea i agree we don't need to have such a bloated government, but the thing is, right now we do, and the government has to fund itself somehow. So until the entire governing mechanism is restructured, they need revenue streams like this so the treasury doesn't end up bankrupt, and we end up in a load of crap I don't think anyone wants to even consider. Just reducing taxes on gas isn't going to help.

I don't think they consider petrol "for the rich", its ore "non essentials". If a guy doesn't have money to pump gas, its not the end of the world. but if the government starts taxing rice imports cos its running out of money, that would be really bad. I think that's why a lot of the taxes are considered as "against rich people". The less well off don't have the money to splurge on stuff like TVs and cars.

And imo, if you go to a coffee shop and spend 2 grand of a cup of coffee, you prolly deserve to be taxed a whole lot more than the guy who can barely afford feed his family.

Yes, I agree with taxing the more affluent, but maybe you don't realise the gravity and importance of petrol or fuel in every country, even a less economically developed country like Sri Lanka. Petrol was unavailable for one day or so...and there was complete and utter havoc and chaos in the city...you say a poor man needs to feed his family, but his income often comes from a rich individual or company which often relies on fuel for his or their daily operations...the world is so dependant on fuel, therefore I think restructuring the public sector is easier than over-taxing fuel and so many other things simply to keep the public sector running, whilst it still makes whopping losses (CPC, CEB etc.) and the private sector is brought down to its feet in its intense battle to retain profibility and remain worthwile, offering Sri Lankan citizens and foreigners alike the much needed goods and services that are required by them to keep on living...if the current scenario is prolonged the economy will only steer closer to destruction and further away from development, with mounting debt, inflation and so much more...therefore it is time for certain individuals to put the country before their personal interests and bring change to Sri Lanka...

and i just heard that sri lanka might be going for an IMF bailout next year coz' the govt is running out of money real fast!! next year is very very bleak!!!! :(:(

Yes, I agree with taxing the more affluent, but maybe you don't realise the gravity and importance of petrol or fuel in every country, even a less economically developed country like Sri Lanka. Petrol was unavailable for one day or so...and there was complete and utter havoc and chaos in the city...you say a poor man needs to feed his family, but his income often comes from a rich individual or company which often relies on fuel for his or their daily operations...the world is so dependant on fuel, therefore I think restructuring the public sector is easier than over-taxing fuel and so many other things simply to keep the public sector running, whilst it still makes whopping losses (CPC, CEB etc.) and the private sector is brought down to its feet in its intense battle to retain profibility and remain worthwile, offering Sri Lankan citizens and foreigners alike the much needed goods and services that are required by them to keep on living...if the current scenario is prolonged the economy will only steer closer to destruction and further away from development, with mounting debt, inflation and so much more...therefore it is time for certain individuals to put the country before their personal interests and bring change to Sri Lanka...

Sorry I haven't been online much. I've realized how insanely slow ADSL is :bash:

Restructuring the public sector and setting the economy back on track would be great, but none of that is happening as long as the war continues. For one, tourism, investments etc. are going no where as long as people see the occasional report about the fighting on CNN. And the government can easily hide all its mistakes under the war banner. They know they could bankrupt the country and have the economy on the brink of collapse, but people aren't going to care as long as the military can produce continuous victories on the battlefield.

The end of the war would solve a lot of problems though, specially with the really short term memory Sri Lankan people seem to have when it comes to electing representatives. The UNP saved the country from the dreadful position it was in in 2001, but their "belt-tightening" measures were pretty unpopular and that's all that mattered in the elections of 2004. I'm pretty sure the same would go for MR if he mismanages the economy.

That said, gotta love this video

CuRg_vW1q8A&hl

in most of the times I can see, the political and politicians are only damaging the country. Otherwise Sri Lanka will rock.