WikiLeaks: In 2008, Rajapaksa Introduced A New Levy To Counter Damage Caused To The Environment
A victimised protester against the ground water contamination scandal in the Gampaha
August 4, 2013 |
“The budget introduced a new ‘Environment Conservation Levy’ to counter damage caused to the environment through water and air pollution and soil erosion. The government estimates the cost of these forms of environmental damage to be over 2 percent of GDP. The government intends to devote more funds to environmental protection by taxing individuals, businesses, and items considered to be harmful to the environment. It will collect Rs 20 per month from every household that owns a vehicle, a telephone and an electricity connection. (Comment: While the environment conservation goal is laudable, this is likely to be another of the many supposedly purpose-designated taxes that in practice mostly ends up going towards general revenue.)” the US Embassy Colombo informed Washington.
The Colombo Telegraph found the related leaked cable from the WikiLeaks database. The ‘Unclassified’ cable discusses the Rajapaksa’s 2008 budget . The cable was written on December 13, 2007 by the US Ambassador to Colombo Robert O. Blake. Read More
Viewing cable 07COLOMBO1661, SRI LANKA: 2008 BUDGET WOULD BOOST DEFENSE AND TRANSFERS TO RAJAPAKSA CONSTITUENTS
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SUBJECT: SRI LANKA: 2008 BUDGET WOULD BOOST DEFENSE AND TRANSFERS TO RAJAPAKSA CONSTITUENTS REF: A. COLOMBO 1562 ¶B. COLOMBO 1464 ¶1. (SBU) Summary and comment: The Rajapaksa government could survive or fall depending on the outcome of a December 14 final vote on its 2008 budget. The proposed budget continues the president's emphasis on high taxes to fund big government and transfers to his primary constituents: civil servants, farmers, unemployed college graduates, and poor people. The government claims that revenues will keep pace with expenditures, but this is no more likely for the 2008 budget than it was for the 2006 and 2007 budgets, whose deficit spending spurred inflation. The budget significantly raises defense spending and substantially increases allocations to ministries that the president and his brothers control. We share the view of many civil society critics that this budget illustrates the Rajapaksa government's short-sighted, politically driven, and often non-transparent management of the Sri Lankan economy. From what this budget indicates, we doubt the government can contain inflation or realize the 7.5 percent growth it predicts for 2008. End summary and comment.
