Ravi K clarifies controversial taxes in moving amendment to Appropriation Act

By Ashwin Hemmathagama Our Lobby Correspondent

Minister of Finance Ravi Karunanayake yesterday in Parliament moved an amendment to the Appropriation Act, No. 41 of 2014 as well as explaining some of the Budget’s controversial taxes.

Moving the second reading adjourned debate, Karunanayake said: “Our Budget was prepared to curtail unnecessary costs. We were successful in addressing the needs of 99% of the public.

What we achieved within 21 days you failed to do after being in power for 11 years. Believe me, the economy is in a crisis which is reparable.”
“You (Opposition) took Greece as an example. All contingent liabilities stand at Rs. 923,000 lakhs. Will you be responsible for it? We only took off the unnecessary capital expenditure from what was proposed in the previous Budget,” he added. Speaking about the controversial Mansion Tax, Hybrid Vehicle Tax, and Super Gain Tax, the Minister said: “The Mansion Tax was aimed at those who made money from corruption. But those who have large houses for long periods will not be liable to pay. There is a depreciation consideration also. We are targeting 1,000-1,500 mansions for this tax, which will raise Rs. 1,000 billion.

“Secondly, the Vehicle Tax was reduced by 15% to make vehicles less than 1,000 cc affordable to all. Electric cars by 5%. A tax of 40% was introduced to avoid a mismatch between hybrids and diesel or petrol driven vehicles,” the Minister said.

“Super Gain Tax is to recover revenue from those who use national resources and make money without any tax payments. CSN is the best example. I need not remind you about its ownership. CSN has avoided paying the Spectrum Tax for the last six years. The electricity bill is outstanding. Presidential Security provided the vehicles,” Minister Karunanayake charged.

In response, the Leader of the Opposition Nimal Siripala de Silva pledged support for all the benefits proposed in the recent Appropriation Bill for public betterment.

“Ravi used to respond on the budgets and the economy during his days in the Opposition. Now he has the chance to act. Taking this Budget in summary, we have no objection to giving benefits to the public. We too will be a part of it by passing it in this House. Without our support you will not be able to pass it. Such agreement was the result of the discussion we had with President Maithripala Sirisena. You made this Budget by making minor changes to what we presented,” he said.

http://www.ft.lk/2015/02/06/ravi-k-clarifies-controversial-taxes-in-moving-amendment-to-appropriation-act/

"We are targeting 1,000-1,500 mansions for this tax, which will raise Rs. 1,000 billion."

typo?