However, the threshold of income for levying the higher tax rate is still being worked out.
MR trying to control the rich in the country through taxes
Monday, 21 October 2013
President Mahinda Rajapaksa, who is now paranoid of losing control inside and outside his government, is looking at ways to take control.
The President’s close confidantes have advised him on unleashing a witch hunt against governing party members who are deemed as disloyal to the Rajapaksas.
However, the Rajapaksas have now found a good way to take control of the rich and influential businessmen who are not under their control. The President had formulated this plan with the help of his racketeer businessmen.
The Rajapaksa government is reportedly looking at introducing an additional tax on wealthy Sri Lankans in the 2014 budget to be presented on November 21.
The annual income and assets of wealthy Sri Lankans are to be taken into account in establishing a new tax category for the super-rich.
This tax is to be applied in addition to other normally levied taxes paid by them.
However, the threshold of income for levying the higher tax rate is still being worked out.
A senior member of a business chamber said that regardless of the new moves, the Rajapaksas will find ways to ensure that their racketeer businessmen friends are shielded from such payments.
President Mahinda Rajapaksa, who is now paranoid of losing control inside and outside his government, is looking at ways to take control.
Sunday, October 20, 2013
A crude oil shipment delay and changes in a bill of certification have given rise to speculation that Sri Lanka is procuring Iranian crude from third parties despite imposed sanctions imposed by the United States.
The Ceylon Petroleum Corporation (CPC) contracted a company by the name of Mercol General Trading LLC to supply a consignment of ‘Murban’ light crude oil which could be refined at the Sapugaskanda refinery. The shipment is due to arrive at the Colombo Port from Sharjah at any time. There has already been a delay of 17 days from its scheduled date of arrival.
The certification sought to be produced by Mercol is different to the usual certification required by CPC for Murban, authoritative sources said, adding that the load port particulars appear to have been changed. This delay in Mercol’s crude oil shipment and changes in the bill of certification have given rise to suspicions that the tanker, which is expected on October 24, is a third-party shipment of Iranian crude.
The sources said that, despite a US warning not to purchase crude oil from Iran, the CPC was continuing to buy Iranian crude from ships in international waters — thus evading US sanctions. The deal with Mercol may have been one such attempt to buy Iranian crude, they said.
Meanwhile, it was also revealed that the CPC was desperate to continue operations at the Sapugaskanda oil refinery when it contracted Mercol, an international chartering company of the United Arab Emirates. The refinery is now running at reduced capacity of 35,000 barrels a day and the delay in the shipment will compel the authorities to shut down the country’s only refinery as there was inadequate crude for refining, they added. Capacity stands at 50,000 barrels a day.
The state-run refinery has faced closure from time to time due to supply shortfall after the purchase of Iranian oil was halted by US sanctions.
