UNP alleges govt. creating class terrorism

The main opposition UNP yesterday charged that the government was creating ‘class terrorism’ in Sri Lanka by shaping its financial polices just to suit a selected upper social stratum.

UNP MP Kabir Hashim told journalists yesterday that the government had exhibited this through its recent decision to increase taxes on vehicles. Mr. Hashim said the import duty on luxury vehicles was originally 524 percent while it was reduced to 250 percent in June 2010 but he said it was increased up to 350 percent on March 31 this year. He said the import duty percentage for luxury vehicles now lies at a level which is lesser than the original level of 524 percent.

However he said in the case of three wheelers, the original import duty level was 100 percent before June 2010. He recalled that the duty was reduced to 40 percent in June 2010 but increased by 100 percent according to the recent tax revision bringing the duty level to 140 percent.

“It is the poor who own three wheelers and they have been hit by the latest tax revision,” he said.

Besides, the UNP MP charged that the government had once again clearly exhibited that it was a follower of neo liberalism. He said neo liberalism came into existence after an economic conference in Washington where representatives of several nations got together to find a way out of the economic turmoil they were facing. He recalled that these nations came to an agreement to reduce expenses, reduce the allocation of funds for welfare activities and to increase taxes. This policy he said came to be globally known as ‘new liberal policies’. He said these were the same policies which the government was following today. Mr. Hashim made this point by stating that the government had reduced the allocation of funds for education and health while increasing taxes. He charged that this has been done to please the IMF to get the latest instalment of the standby agreement.