Thousands protest against tax hike

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By Editor_1
Members of Sri Lanka ports' trade union take part in an anti-government protest against tax reforms amidst the  country's economic crisis, outside the ports authority in Colombo on Wednesday (Feb 8) -Ishara S. Kodikara / AFP

COLOMBO – Thousands of Sri Lanka’s highly paid state workers took to the streets against tax hikes on Wednesday (8), citing the hike as ‘unfair’ with most of them absorbed into the tax brackets for the first time.

The tax hike protest also saw hundreds of private sector workers gathered in Colombo Fort, demanding a downward revision of the newly implemented taxes.

The protesters later went to the central Colombo Hyde Park to continue their agitation after a court order instructed them to clear the area.

Under the theme ‘Repeal Oppressive Tax Refers’, workers representing 40 trade unions including private and public sector banks, university lecturers, Port Authority, Ceylon Electricity Board (CEB), Government Medical Officers of Health (GMOA) participated in the protest.

“We don’t mind paying taxes, we know we have to contribute to government revenue,” said K .L Chandana, representing CEB Engineer’s Union, but deemed moving from one tax bracket to a higher tax bracket was unrealistic, especially with the inflation and global factors. “Earlier we were in the green to pay taxes because the country wasn’t in hyperinflation and we had a better quality of life, but our income don’t match with inflation. So there’s no way we can squeeze another expense,” he pointed out.

The ongoing economic crisis has forced President Ranil Wickremesinghe’s government to impose high PAYE and personal income taxes up to maximum 36% depending on a person’s income.

A person who paid a tax of 9,000 rupees on a 400,000-rupee monthly income will now have to pay 70,500 rupees as income tax, the latest data showed.

The government on Wednesday took a step back to partially exempt some allowances including fuel, driver, and vehicle, a government document showed.

“We don’t mind paying fair taxes, we paid them earlier,” Udaya Ekanayake, an administrative officer from Anuradhapura said, but added, “We are opposed to taxation because it is not in line with the economic crisis, inflation is exceeding 50% and we are being taxed by 32%.”

Meanwhile, the GMOA Media Spokesman, Chamil Wijesinghe said, the protest was the first warning and that if the government fails to respond, the unions will bring the country to a standstill.

“If the government still can’t understand, we are ready to take further actions and we will make the country come to a standstill,” Wijesinghe said.

A renowned actor and a new member of the Ceylon Mercantile Industrial Union Peter d’ Almeida said the government should bring in higher corporate taxes and taxes on the super-rich reducing the burden on the general public.

He said the public have had enough of burdens placed on them, highlighting the ‘so-called tax reforms’ and increased price in utilities, and the general increase in the cost of living. “And the sad part is people who ruined this country are still in power and it is people who have nothing to do with this facing the burden of rebuilding the country. That is unacceptable,” he added.

“A very high cooperate tax and taxes on super rich including wealth and capital gains should be in order,” he urged.

-economynext.com

 

Editor_1
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