IMF beckoned by Ranil & party proposes measures to intensify the crisis – Sunil Handunneththi
, emphasizes that the IMF invited by Ranil and the party has now proposed measures that will further intensify the crisis, says Sunil Handunneththi, member of the Economic Council of the National People’s Power.
He emphasized this while addressing a press conference of the National People’s Power Economic Council held at the JVP head office at Pelawatta this morning (22).
Further, he said, “The substance of the facts mentioned on pages 14 and 15 of the report presented by the IMF in June is the new Imputed Rental Income Tax (IRIT)”. Although this tax is considered an income tax, it is levied on properties that do not generate income. According to the 18th section of the given report, taxes are also imposed on empty houses and buildings that are not currently generating income. As of last month, there is a situation where about 221,000 construction sites have been closed, and the construction industry has been crippled. On the other hand, even though the local government bodies are not functional, the assessed taxes collected have been increased. Unable to bear the burden of taxes, a large number of university professors and doctors are leaving the country, and they are preparing to levy new taxes like this. The IMF, which the likes of Ranil called to rescue the country from the crisis, has now accelerated the actions that will further intensify the crisis.
According to the conditions of the IMF, the initiative to restructure the local debt cut off the profits received by the pension funds, including the Employees’ Provident Fund. After that, it has now been proposed to pay tax on the income estimated on land and houses by the new conditions. Earlier budgets talked about a ‘super mansion’ tax and a ‘super game tax’, but these taxes have not been implemented until now. It is stated in the economic monitoring report of the Parliament that the Internal Revenue Department, Customs Department and Excise Department have not collected 1131 billion rupees. The same report states that by June 23, 2023, the amount of tax that should have been collected for 15 years but has not been collected is 200 billion rupees. Many governments have not collected such a large amount of taxes, which had been collected from the people but not handed over to the government. Such fraudulent practices are followed without collecting the taxes that should be collected from those who have political affiliations. The National People’s Power will review everything about these oppressive conditions and work to reduce the pressure on the people by discussing with them. We ask the masses to be vigilant regarding the agreements Ranil Wikramasingha and Rajapaksas joint regime intends to enter nationally and internationally into they make internationally. The People’s Mandate that the National People’s Power will obtain in the upcoming presidential election will defeat this joint rule and work for the welfare of the people.
Responding to journalists’ questions about whether this tax applies to all families in Sri Lanka, Mr Handuneththi said, “That is the problem here. The report given by the IMF did not mention a few people. According to that report, anyone who owns a land and a house is subject to this tax. People who are not very rich also run rental houses as their only source of income or as an additional income. Ranil Wickramasinghe said in Parliament that this tax does not apply to rented houses. However, the essence of the tax is to impose a new tax on all properties that are supposed to generate rental income. Apart from the IMF report, the government has not officially presented any report in this regard.”
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