Drowning in privileges

Wednesday, 31 May 2017 00:00 - - {{hitsCtrl.values.hits}}

The Government, facing a fresh wave of unpopularity in the wake of the floods, has reacted by suspending luxury vehicle purchases for 2017, opening up the possibility for the money to be used for relief work and other public essentials. However, the Cabinet, which met on Tuesday, has failed to take steps to deal with this long-drawn public criticism in a more substantive and long-term manner.

In June 2016 Rs. 1.67 billion was earmarked to purchase vehicles for ministers, 8 March the following year another Rs. 494.9 m was also passed as a supplementary estimate. Just last week Rs. 360 m was passed as the rains started taking their sacrifice.

The Government provides each Cabinet, Deputy and State Minister with an official vehicle and two other vehicles as well as a vehicle permit. In addition, vehicles are also provided to the personal secretary, media secretary, the two coordinating secretaries and public relations officer of every minister. Government members justified the latest supplementary estimate on the grounds that it was to provide vehicles for ministries but in many instances these funds could be better utilised to provide important public services.

Despite such privileges, it was revealed recently that 92 MPs had sold their tax free vehicle permits to other parties resulting in the loss of an estimated Rs.7 billion in taxes. At a time when the Government is raising VAT and other taxes to increase Government revenue the fact that it refuses to charge some of the richest members of society is appalling. This is especially galling to the public because most average people have to pay over 100% taxes for even the cheapest Indian-made car and can barely dream of the BMWs, Benz and SUVs preferred by politicians of all hues.

The Cabinet decision to suspend vehicle purchases does not extend to orders already placed and the government budgetary systems are so opaque it’s almost impossible for the public to know how much has already been spent on vehicles this year. The Government has also stubbornly resisted any efforts to calculate how much ministers are paid in allowances and other perks that make up the bulk of their expenditure and streamline it according to the status of the ministry in a transparent manner.

Despite declaring ad nauseam that the aim is to make Sri Lanka a mirror of Singapore, the Government has refused to introduce legislation, like that of its idol, which specifies the engine capacity and make of vehicles that can be imported by top politicians, thus limiting the ravages of tax avoidance and budgetary wastage. As long as the President, Prime Minister and the Cabinet refuse to implement such measures they are only paying lip service to exigencies and not genuinely making an effort to address public concerns.

Some could argue that the luxury vehicle issue is just one part of the larger political malaise that ails Sri Lanka, and they would be largely true. Unfortunately, large-scale overhaul of the political system is next to impossible, as has been proved in the past two years, leaving a deeply disillusioned public fighting for at least piecemeal change. Surely some change is better than none.