Amid the uproar, protests and heated arguments that erupted between the Government and Joint Opposition (JO) legislators, the Government, after a lengthy debate secured the passage of the VAT (Amendment) Bill in Parliament with a comfortable majority on Wednesday (October 26). The JVP, also a stakeholder of the January 8 “Silent Revolution” voted against the Bill along with the JO members. The Tamil National Alliance (TNA) which is the main Opposition, was absent during the vote. The JO MPs who enacted another episode of their drama were seen wearing black bands around their necks and arms as a mark of protest against the VAT hike.
At the end of the debate, JO leader, MP Dinesh Gunawardena asked for a division by name. At the second reading vote, the Bill received 112 votes in favour and 46 against.
A notable feature was that, 65 MPs from both, the Government and Opposition ranks were absent at the second reading vote. Following a request by JVP MP Bimal Ratnayake, a division was taken at the third reading and 76 voted in favor and 23 against, and the Bill was passed with a majority of 53 votes. Despite the prior notice issued to all Government legislators to be present in Parliament at the time of voting, many were absent during the vote.
The Speaker and some Ministers were absent as they were on overseas tours. However, the absence of several key Ministers such as Nimal Siripala de Silva, Duminda Dissanayake, Harin Fernando, Rishad Bathiudeen, Mangala Samaraweera, Rajitha Senaratne, T.B. Ekanayake, Mano Ganesan, Lakshman Senewiratne and A.H.M. Fowzie was conspicuous. Several Opposition Parliamentarians were also absent, while all TNA and CWC members were not in the Chamber when the vote was taken.
The VAT (Amendment) Bill was taken up for debate on the floor of the House after the Supreme Court determined that its provisions were consistent with the Constitution. The new Bill was drafted after the Supreme Court issued an interim order on July 11 to suspend the 4 percent VAT increase imposed by the Government on May 2 until the relevant legislation is passed in Parliament.
The Government presented the revised VAT Bill in Parliament on October 4. Deputy Speaker Thilanga Sumathipala on Tuesday (October 26) told the House that the Supreme Court has ruled that the VAT (Amendment) Bill and its clauses were consistent with the Constitution.
However, Finance Minister Ravi Karunanayake declined to accept an amendment moved by JO MP Bandula Gunawardane calling for the exemption of health services from the VAT and said, it would be imposed only on medical consultation fees and in-house hospital charges.
Joining the debate Minister Karunanayake said, the tax revisions were temporary and the Government was compelled to increase the taxes to find money to pay back the massive loans obtained during the former regime.
He said, VAT would be charged on posts and telecommunication, liquor and tobacco. Seventy four essential goods have been exempted. A decision has been taken to exempt small scale businessmen from VAT. Minister Karunanayake told the House that they are shouldering the burden of a debt-ridden economy.
The money has been wasted by the previous Government on superfluous projects. Citing a few examples, he said, the loss on Mattala Airport is Rs 13.6 billion while Rs 9.7 billion has been spent to construct the Lotus Pond and its present loss is Rs 2.5 billion.
He said, the Hambantota Port, Hambantota Convention Centre and Akuregoda Defence Complex have also become white elephants. The Government has the onerous task of correcting them.
JO front liner MP Wimal Weerawansa who joined the debate was highly critical of the decision by the Government to increase VAT. Weerawansa alleged, what this Government said before January 8 was that the Rajapaksas had plundered the country and now it’s a miracle that the national coffers are full of money so that the people can live a prosperous life! Even during the time of war, the former Government didn’t impose 15 percent VAT on health, education and telephones despite its debt and war burden. The Government through the Central Bank bond scam has put more burden on the people, and it is the biggest financial scam ever that has taken place in the country.
In yet another highlight, COPE Chairman Sunil Handunneththi tabled the final COPE report on the Central Bank Treasury Bond issue, in the House. Presenting the report, MP Handunneththi said, all the members of COPE have collectively agreed to the 15 recommendations of the report, but, added that there is a clear dissent on the content of the report. The COPE Chairman told the House, of the 26 members, 16 have endorsed the report without footnotes, while 9 members endorsed it with footnotes.
Responding to the COPE Chairman’s speech, Prime Minister Ranil Wickremesinghe said, it was a success of the Good Governance Government under the leadership of President Maithripala Sirisena which paved the way to submit such a report in Parliament. The Premier described it as a victory for Parliament.
He recalled their fight over the past 10 years to bring about an oversight committee system and it was the vociferous MPs in the JO today, who rejected it when they were in the former Government. He asked the shouting JO members whether this kind of report had been presented in Parliament earlier.
He told the House in lighter vein that they could even transform a bunch of crooks to embrace good governance. Now, such people have become the guardians of good governance which they despised when they were in power.
He recalled, reading the book “ Yali Upannemi” by Dr. Gunadasa Amarasekera while in school.
Those “born again” have suddenly embraced the good governance. The Premier said, if the Greek Bond issue had been investigated, the issue here today would have not been raised.
He queried as to whether anyone dared to investigate the Greek Bond issue.
After the COPE report was tabled in Parliament, JO Leader MP Dinesh Gunawardena demanded a special parliamentary debate on the COPE report, before the Budget debate. Leader of the House and Higher Education and Highways Minister Lakshman Kiriella said, a special debate on the COPE report will be given after discussing the matter at the Party Leaders’ meeting.
The Minister, stressing that they are not afraid, drew the attention of the House to the sorry state of 30 COPE reports ending up in the dustbin during the previous regime. He also recalled as to how one of the previous COPE Chairmen, Wijeyadasa Rajapakshe was removed from the post.