The increase in the NBT, PAL and the new
variable VAT rates were supposed to take effect on 1st January or so
the Govt. notified businesses. Accordingly businesses had to change their
software, and billing systems to take account of these changes, and of course
increased costs to many and most of all to the ultimate consumer.
Some are in the throes of increasing retail
prices, to reflect additional costs etc. and hey presto, suddenly yesterday, we
were informed that these changes have not taken effect yet!!! Apparently until
Parliament passes the necessary legislation to effect the changes or so they
put it as an excuse.
It is obvious even the Finance Minister
who masquerades as a Businessmen clearly has not understood how inconvenienced
let alone problems this will cause. People, especially companies that are
spending millions and even importers to have to pay PAL, and NBT in large
amounts will be hankering to get refunds for overpayments in these two weeks!
Will they be able to get it, and if so how soon. These are all factors, those
who seem to rule have NO CLUE about, and actually don’t seem to care.
It is this kind of attitude that results
in businesses losing confidence in the Govt. to get anything right. A private
business has many challenges, as they have to compete with others for business,
so the more uncertainty that persists, forecasting, and pricing becomes
difficult, let alone having any idea of profitability where thin margins are
the rule in a tight market.
Clearly, those in Parliament don’t seem
to understand any of this, or if they do, don’t seem to care. This attitude
does not bode well for attracting Foreign Investment if they realize what kind
of step-motherly treatment is given to the Private Sector which is the engine
of this democracy and the Public Sector the unquestionable drag on growth of
the SL economy.
It is becoming obvious that economic
illiteracy amongst even the likes of Ravi Karunanayake, who is supposed above
all to be an accountant, is far below needed levels, and it is therefore clear
as daylight that people more in tune with common sense and logic are
represented in Parliament, and if this kind of mess in the budget is anything
to go by, is a sack able offence, and a good enough reason for replacing him,
as seems to be the general consensus today.
Not only has the Govt. lost credibility
in rolling back the Budget proposals drastically, it seems to have nullified
all revenue raising provisions, and kept all revenue losing proposals in tact. What
does this mean to the already ballooning deficit? An EXPLODING DEFICIT NO DOUBT!
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