Sri Lankan Tax Reforms

 

I can see many Sri Lankans are upset about the new income tax. If you think logically, it is a long overdue and incredible move by the SL government. This will help the poor and the middle class in the long run. Direct taxes like income taxes are calculated based on your capacity to pay. The direct tax is progressive because the government knows who they are taking from and who earns how much. An indirect tax is a blanket tax levied on the consumption of goods/services. Indirect taxes like VAT and excise are by their very nature regressive because they are a point of sale tax. You don't know who uses how much. In this case, poor and middle-class people spend more of their wealth or income on taxable goods and services than rich people.

SL tax policy has always been unprecedentedly one-sided. Economists say that to maintain a fair society, 40% of tax revenue should come from indirect tax and 60% from direct tax. However, in Sri Lanka, indirect taxes account for nearly 82% of total tax revenue. By increasing the percentage of tax income from direct taxes, Sri Lanka can finally reduce taxes on goods and services. This will make consumables affordable for the poor and middle class in the long run. People are angry because they now know the government takes money directly from their pockets. It won't matter to them if it takes it indirectly through higher taxes on goods and services. A major defect of democracy is that governments are compelled to appease people in order to win votes rather than doing what is right. That is one of the reasons why we are a failed state in the first place. So I see this as a very progressive move that will lead to a fairer society.

PS: I'm not an expert on macroeconomics, so I'm open to any counterarguments😊 

என் மௌனங்கள் தேடும் சங்கீதம்

 

நான் உன் கண்களின் கதவுகளை மூட வைத்த
நாணத்தை  மெல்ல  வருடவே
இனிமேல், நீ என்றென்றும் என்னுடன் இருப்பாய்;
எனக்கு ஒளி கொடுக்க, ஓ திங்களே.

ஒவ்வொரு சிறிய சோகங்களையும் சிரிப்பாய் மாற்றும்
எனது பாதித்  துணையே!
ஒவ்வொரு இரவையும் பகலாய் ஆக்கும்
எனது உண்மைக் கதிரொளியே. 

நீ இவன் உயிரின் துணை
வண்ணமயமான கைரேகை போல.
நான் உன்னை இமைக்காமல் காப்பேன் என்னவளே

இந்த நீல விழியின் ஆழங்களில் நான்
உருகினேன் எனை அறியாமலே 

நீ என்னை வாழ்க்கையை தழுவி கொள்வாயா
என் சுவாசங்கள் நீங்கும் போதும் ?
என் மௌனங்கள் தேடும் சங்கீதமே.

The Modi Question

Although I am aware of the global politics behind the release of this documentary, I still think it is the duty of every Hindu to oppose Modi. Even the oldest of hymns in the Rig Veda says "The Truth is One, but the wise call it by many names". We believe that all religions contain elements of truth and we should show a spirit of respect for different faiths and traditions. Buddhism, Sikhism and Jainism all emerged out of India yet they peacefully coexisted without a single religious war because of this attitude.

As a Hindu, I have no problem kneeling before the cross or praying in a mosque or reading the Dhammapada every night before I sleep. My religion taught me that. I oppose his politics because I'm a Hindu. I will not hesitate to say that I am not a Hindu if his brand of politics becomes Hinduism. India is the land of saints. I hope the words of those enlightened saints will have the power to oppose his politics.

A Long Walk Towards Peace

I know some sections of the Tamil population don't see 13A as the solution to the national question. They have a valid concern, and I understand it. 13A has enough loopholes for the Sri Lankan government to give power with one hand and take it back with the other hand. In the absence of state government support, 13A is utterly useless. For example, the democratically elected provincial council has no authority over financial or administrative matters. The governor who is appointed by the president has control over both administration and finance. 

The Chief Minister and other ministers can help or give advice to the governor but he is not required to act on it. Through the governor, all financial and administrative powers are once again placed in the hands of the Sri Lankan government. During C.V. Wigneswaran's tenure as Northern Chief minister, 13A was partly implemented (13A minus land and police), but the governor never allowed him to establish the chief minister fund, despite similar funds being established in three provincial councils (Southern, Sabaragamuwa and Uva). Based on past experience Tamils feel, even if 13A is fully implemented the provinces where the Sinhalese are the majority will enjoy the fruits of 13A while Tamils would still be treated differently by the Sri Lankan government. 

Furthermore, even though the provincial council will be granted ownership rights to state land in the province if 13A is implemented, all issues related to land still fall under the President's jurisdiction. So the provincial council cannot distribute land to its people. So, people from other provinces can be allocated land to settle without the permission of the provincial council. The Tamil people are not against Sinhalese individuals coming and settling from the south by purchasing land or resettling Sinhalese who left the northern province due to war. They are only concerned that granting land without the consent of the provincial government can lead to mass colonization of Sinhalese from the south. This will change the demographic composition of the North. The Tamil people say the same thing happened in the Eastern province.

According to the 1946 Census Tamils are 48.75% of the eastern province and the Sinhalese population is just 8.40%. Then mass colonisation of Sinhalese happened through irrigation development schemes like Maduru Oya, Mahaveli and etc. For example, if you take the Maduru Oya project systems H and C, 90% of the settlers were Sinhala and 10% Muslim. There were no Tamils, even though the land was in the Eastern Province. It was a UNP policy laid down by JR and energetically implemented by Gamini. These kinds of acts reduced the Tamil population distribution in the East. According to the 2012 census, Sinhalese make up 23.15% (nearly 300% disproportionate growth compared to 1946) and Tamils dropped to 39% in the Eastern Province.

These are all genuine concerns, It is indeed true that the provincial council can only function if every Sri Lankan government that comes to power hereafter is sincere in its commitment to devout power. As long as every president allows land allocation and other financial proposals of the provincial council, as long as every president instruct the governor to implement the decision taken by the democratically elected provincial council in the north and east, this model will work. But looking at past history it is highly doubtful. 

But is there any other way around this? I can't see one at the moment. 13 plus (13A with these loopholes removed) will not get any parliamentary 2/3 majority. Even if it gets a majority in parliament there is a high possibility that some clauses will require a public referendum. Do you actually think more than 50% of the Sri Lankan population will vote in favour of that amendment? At this point, only the full implementation of 13A is possible. If the Sri Lankan government continues to disrupt provincial council activities without due regard to the rights of the Tamil-speaking people, we could always launch a peaceful, non-violent campaign of civil disobedience based on Gandhian principles.

A form of large-scale civil disobedience was successfully employed in January 1961 in the North and East against implementing Sinhala as the sole administrative language in the North and East. This led to the eventual passing of "The Tamil Language (Special Provisions) Regulation" which made Tamil the language of administration in the Northern and Eastern provinces. So there are things we can do even if the Sri Lankan government breaks its promise. Remember something is better than nothing. It is a long journey to peace and reconciliation. Let's begin by taking the first step.