The Hon. Stepni Fernando

¶ 01 Hon. Presiding Member, today we are debating the Regulations under the Special Commodity Levy Act and the Rules under the Excise (Special Provisions) Act. Taxes are imposed so the Government can provide relief and services to the people. Levies on agricultural commodities are meant to protect farmers. At present, farmers are facing severe difficulties selling big onion and potato; these levies aim to ensure they receive a fair price.

¶ 02 You know about the past “sugar tax fraud.” You also know how it happened and who stood behind it. Now, when we impose such levies, we decide collectively, bringing together the Consumer Affairs Authority, Department of Agriculture, and the Ministry of Finance. In the past, such decisions were taken to suit individuals. As a Government, we have decided to act as one team so that when a levy is imposed, we consider everyone affected. In previous Governments, levies were abused and revenues siphoned to cronies. Up to now, we have not intervened in that manner; we have acted properly.

¶ 03 On excise arrears, about Rs. 10.5 billion is outstanding. This shortfall comes from a small number of entities; others are paying. We must strengthen enforcement to protect compliant taxpayers. In the past, although payments were due within six months, some avoided paying for years by going to court and using connections. Under the Rules now presented, we can collect within three months.

¶ 04 On agriculture, in many countries one acre yields more than ours because they have advanced research; we still use old methods. We are discussing measures to improve. With officials and technologists, we plan to produce quality seeds locally. At present we largely import seed; domestic seed production is low. We are working to build that production chain.

¶ 05 We are strengthening these laws to protect taxpayers because every rupee is for the welfare of our people. From the start, we restored the fertilizer subsidy. Those are the funds we use. We are cleaning tanks and canals and providing facilities for farmers. That is why we collect revenue.

¶ 06 Development will move forward with these revenues. Previously, no one knew where the money went; commissions were taken even on development. Under the National People’s Power Government, revenue is directed to the people.

¶ 07 We cultivate on small fragmented plots. We must expand acreage, protect farmers, provide land and technology. We have decided that every cultivable plot in every district should be brought under cultivation. We import many food items; if we cultivate all possible lands, we can produce our own food and move to a self-sufficient economy.

¶ 08 Thank you.