National Movement for Consumer Rights Protection calls for people-friendly Budget

• Warns against NGO interference 

Tomorrow’s Budget must provide reasonable concessions to the burdened public and these proposals must not be restricted to paper and instead be practically applicable and accessible to the people, asserts the National Movement for Consumer Rights Protection (NMCRP). 

The organisation also stated that special attentional must be focused on reducing call charges and data rates given the public’s high dependence during pandemic times. 

Addressing a media conference in Colombo yesterday, the NMCRP stated it had become common-place now for numerous foreign-funded NGOs to make representations on Budget proposals – especially targeting tobacco and alcohol trades. 

The NMRCP stressed that standard price revisions do come from the Budget, but these NGOs attempt to make them appear a result of their efforts in order to secure further funding from foreign donors. The organisation adds these self-seeking NGOs only put pressure on legitimate tax-paying industries and never factor the presence and serious impacts of illicit alcohol and illicit tobacco trades. 

The NMCRP added that it recognised that tobacco and alcohol products were harmful to health, but given these products were consumed by the public with knowledge of their impacts it was imperative that practical and relevant measures be taken with respect to regulation. 

By heaping undue pressure and taxes on legitimate industry, these foreign-backed NGOs are providing impetus to smugglers and racketeers the NMCRP added, as illicit products become far cheaper and accessible. 

It went on to say that due to inefficiencies and corruption amongst individuals and organisations engaged in regulating the alcohol and tobacco industries in Sri Lanka, the situation had worsened and illicit markets were thriving all over the country. As a result, the Government annually incurs a loss of over Rs. 100 billion, the NMCRP stated. 

It drew particular attention to the artificial toddy racket in the country, which it said was much larger than the legal arrack trade, and urged the Government to take urgent measures against the illicit alcohol and tobacco trades to reduce harm to the public and safeguard State revenue. Focus from the Budget must be to increase taxes on segments that evade payments and stop leakages, the NMCRP said, but not fleece industries that were already paying taxes. 

The NMCRP also proposed the Government increases taxes on institutions engaged in gaming and betting, and drew attention to the APPIT income tax which is often ignored by electrical engineers. It claimed the non-application of APPIT incurred over Rs. 700 million in losses to the Government annually. 

The organisation noted the pressures faced by the Government in this pandemic era, but added that the hardships faced by the public during 2020 which would spill over into next year need to be factored and address by Government.