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The prices of locally-manufactured medicines will go up by more than 20 per cent within the next two months as the machinery used and packaging material are not exempted from VAT, producers said.

VAT is not applicable only for raw materials, they said, adding that they had no option but to pass on the extra production cost to consumers.

Producers are also forced to minimize production and staff and as a result, allowing imports to take place, they noted.

The country presently has around 20 medicines manufacturers, who want an immediate discussion with authorities on how to arrest the situation.

(aruna.lk)

Palitha Range Bandara will continue as general secretary of the UNP this year.

He has been reappointed to the position by party leader, president Ranil Wickremesinghe.

With Bandara presently unwell, his appointment letter was received by the party’s CEO Shamal Senarath at Sirikotha.

The term of the UNP’s office-bearers ended on 31 December.

As per the party constitution, the leader should appoint the general secretary and the treasurer.

The other officials are appointed by the working committee.

In the meantime, Wickremesinghe has decided to appoint a leadership council to prepare the party for national elections.

Japanese finance minister Shunichi Suzuki has urged Sri Lanka to complete its debt restructuring as soon as possible, according to SJB MP Dr. Harsha de Silva.

Also, the country should not jeopardize the IMF programme, Suzuki told opposition leader Sajith Premadasa at a meeting at the Japanese embassy in Colombo.

It was also attended by ambassador Mizukoshi Hideki.

Later, de Silva said the Japanese minister also wanted Sri Lanka to repay due for the cancellation of Colombo light rail transit project in order to start stalled projects.

Suzuki led a Japanese delegation to the country on a two-day official visit.

The laws will be strictly enforced to eradicate the trade mafia generating profits without registering with the Inland Revenue Department, State Minister of Finance, Ranjith Siambalapitiya warned.

State Minister Siyambalapitiya further outlined the government’s plan to expand the tax base, anticipating a rise in the direct tax percentage to 40%.

He made the observations while participating in a special VAT awareness conference at the Ministry of Finance yesterday, organized by Saman Ratnapriya, the Director General of Presidential Trade Unions, for the benefit of civil society activists, government officials, political activists, trade union leaders, and journalists.

State Minister Ranjith Siyambalapitiya further said these challenging times affect everyone, regardless of their economic status, as incomes decrease and expenses rise.

The government acknowledges these difficulties and recognizes the necessity of its ongoing program to address the country’s problems.

Increasing government revenue is crucial for economic development, and to achieve this, the government aims to expand the tax base. The direct tax percentage has already risen from 20% to 30%, with plans to further increase it to 40%. The government also enforces strict laws to combat the trade mafia, preventing them from making unfair profits through fake bills without proper registration with the Inland Revenue Department. Additionally, there is potential to reduce indirect taxes in the future, he said.

Also addressing the conference, Tax Consultant of the Finance Ministry’s Finance Department Tanuja Perera said businesses are required to remit VAT to the Inland Revenue Department monthly, with the amount charged from the 1st to the 31st of January due by the 20th of February.

“Failure to do so may result in legal action under the VAT Act by the Ministry of Finance. Displaying the Inland Revenue Department’s issued license is mandatory for shops eligible to charge VAT. Invoices, following a format set by the Commissioner General of Inland Revenue, must be issued to consumers after VAT is applied. Strict enforcement is in place against fraudulent businesses collecting money without proper VAT registration, with penalties and collected VAT funds pursued by the government, Perera added.

Meanwhile, Director General of Trade Unions to the President, Saman Ratnapriya, said the VAT amendment has sparked heated discussions in today’s society, particularly since President Ranil Wickremesinghe introduced it in the 2024 budget in his capacity as the Finance Minister.

“This budget serves as the economic blueprint for the current year, and without meaningful societal discussions, turning its proposals into reality becomes challenging. That’s why seminars on VAT are organized.

“Numerous misconceptions surround this VAT amendment, notably the increase from 15% to 18%. While the tax has risen by 3% for existing goods, some items have gone from 0% to 18%. Additionally, due to tax adjustments, certain products experience a lower-than-expected VAT increase of 18%. To navigate these complexities, a thorough societal discourse on this VAT amendment is crucial,” he said.

Also speaking at the conference, K. K. I. Eranda from the government revenue unit of the President’s Office said that government inefficiencies in VAT collection have been identified, impacting the potential contribution to the economy.

“Proper VAT collection could add 6% to the gross domestic product, but currently, only 2% is realized. Three primary areas of tax leakage have been uncovered: businessmen not remitting collected taxes, irregularities by officials, and losses due to tax exemptions. Addressing these leakages is crucial for stabilizing the economy.

“In the first half of 2019, VAT was at 15%, reduced to 8% in 2020, and maintained for the next three years. However, the economic downturn persisted, indicating that the VAT reduction alone did not stimulate growth. To revitalize the collapsed economy, a VAT increase of 18% is proposed.

“Currently, around thirteen thousand businesses are registered for VAT collection, with the government aiming to increase this number to fifty thousand in the future,” he added.

A gazette notification has been issued to allow for the import of vehicles essential for certain state institutions, said finance state minister Ranjith Siyambalapitiya.

For foreign-funded projects, the vehicles will be bought from own funds. He said the requirements are two buses for the Education Ministry, 21 double-cabs and three mobile maternity clinics for the Health Ministry and a SUV for the Labour Ministry.

Three ramp buses are required to transport air passengers, he said.

The book “I am Austin,” authored by Mr. Austin Fernando, a former presidential secretary, was presented to President Ranil Wickremesinghe at the Presidential Secretariat yesterday (09).

Serving as both an autobiography and a commentary on public service and political activism, the book intertwines Mr. Fernando’s experiences in public service with reflections on the intricacies of political engagement.

Mr. Fernando, known for his multifaceted roles in contemporary Sri Lankan history, notably held the position of Secretary of the Ministry of Defence during the 2001-2003 ceasefire agreement and later served as the President’s Secretary from 2017 to 2018.

His involvement in high-profile responsibilities within the public service and participation in private and international corporate functions make him a first-hand witness to some contentious events in Sri Lanka’s political history.

Offering a unique perspective, “I am Austin” unveils aspects of Sri Lankan political and administrative realms that often remain undocumented in mainstream media or other sources.

The book serves as a window into the unexplored truths of the country’s political landscape, shedding light on the intricacies, vulnerabilities, and complexities inherent in human nature within the realms of government and diplomacy.

In essence, “I am Austin” stands not only as an autobiography but also as a timely social discourse.

A new Deputy Inspector General (DIG) of Police has been appointed to the Criminal Investigations Department (CID), Sri Lanka Police reported.

Accordingly, DIG of Police Western Province (North) Rohan Premaratne has been appointed as the DIG of the CID.

Sri Lanka's Sports Minister, Harin Fernando, and International Cricket Council (ICC) Chief Executive Officer, Geoff Allardice, held a productive meeting today to discuss the future of Sri Lanka Cricket (SLC).

The two leaders engaged in a "constructive discussion" focused on finding a way forward for the cricket administration body, which has faced internal challenges in recent times.

Samagi Jana Balawegaya (SJB) member Nayana Wasalathilake was sworn in as a Member of the Parliament of Sri Lanka today (Jan 12).

Wasalathilake, a top businessman, was sworn in before Speaker of the House Mahinda Yapa Abeywardena in Parliament.

Nayana Wasalathilake fills the vacancy created due to the recent resignation of SJB MP Chaminda Wijesiri.

Earlier this week (Jan 09), MP Wijesiri announced his decision to step down as a Member of Parliament.

At the time, he said the Parliament needed a new mandate, adding that the public was cursing all 225 MPs, including their children, and that his children did not deserve such ill will.

Her Royal Highness Princess Anne, the sister of Britain’s King Charles III, has arrived in Sri Lanka on an official state visit.

The Princess Royal of the United Kingdom, accompanied by her spouse Vice Admiral Sir Tim Laurence, will be in Sri Lanka from today until January 13, 2024.

Princess Anne is in Sri Lanka to celebrate the 75th Anniversary of diplomatic relations between Sri Lanka and the United Kingdom.

The second paper of the ongoing GCE Advanced Level Examination Agricultural Science subject has been nullified in all three languages, the Department of Examinations announced today.

According to the Exam Department, the decision has been taken to nullify the exam paper which was issued on Wednesday (Jan 10) due to suspicions of its leakage on social media before the examination.

The Commissioner General of Examinations has declared that a new paper for the affected subject will be provided after the completion of the ongoing exams.

The Commissioner General of Examinations is expected to announce later the date of the new Agricultural Science second paper of the Advanced Level Examination.

SJB’s Chaminda Wijesiri has announced his resignation as a member of parliament.

Making a statement to the House today (09), the Badulla district MP said he tendered his letter of resignation to the secretary general of parliament.