Protests over state revenue collection overhaul

A government move to overhaul revenue collection agencies in an effort to boost dwindling income has irked employees in the Inland Revenue Department (IRD), Sri Lanka Customs (SLC), and the Excise Department (ED) with trade unions threatening action.

Trade union leaders of three entities warned in a letter to the President, Prime Minister and the Finance Minister not to kill the ‘goose’ laying golden eggs by amending acts of the three agencies and appointing a Revenue Efficiency and Investigation Unit under the Finance Ministry above their management.

The Ministry has already prepared a draft bill to repeal the Customs Ordinance prepared by a special committee spending a sum of Rs. 9 million, a leader of All Sri Lanka Customs Services Union (ASLCSU) told the Business Times.

He noted that according to information unearthed by them, the new bill will remove the power vested in the SLC under the existing ordinance.

It will contain provisions to ease punishment against illicit importers, drug dealers and allow the free flow of foreign items as well as flora and fauna species without any restrictions, he said alleging that it has proposed to impose a maximum penalty of Rs. 5 million for smuggling any quantity of dangerous drugs and remove the provision of imprisonment.

The Sri Lanka Customs Ordinance was introduced in 1861 and 50 amendments have already been made since its inception.

The aim of the government to amend the Customs Ordinance is to absorb modern industrial trends in the current global market and other relevant technologies in order to reap maximum benefits for the country, a top Finance Ministry official said add- ing that it will enable Sri Lanka to update the prevailing import mechanism and minimise current trade irregularities.

Customs collects 52 per cent of the total tax revenue of the country, the ASLCSU leader said adding that this government was brought to power for good governance and not to allow ‘illegal’ monitoring units to interfere in the affairs of government departments.

The joint committee of IRD trade unions has vehemently protested against the government’s plan to amend the Inland Revenue Act separating the implementation of statutes and tax administrative functions of the department.

This will affect the promotional prospects, job security and benefits of employees a member of the joint committee said adding that they have written to the President, Prime Minister and Finance Minister to withdraw the proposed amendment to the IRD Act and protect the rights of employees.

They also emphasised the need of carrying out tax administration and revenue management in accordance with the present constitution and regulation requirements without the interference of outside monitoring units.

These unions vowed to stage protest demonstrations and intensify their campaign to strong trade union action, if the authorities failed to withdraw the proposed amendments to the IRD Act and the interferences of the monitoring unit.

Meanwhile employees of the Excise Department ( ED) have also protested against the Government’s move. A member of the All Lanka Excise Services Union said they are against appointing special units headed by retired military officers or police officers above their administration.

(Bandula)