The Jana Aragala Alliance has scorned the government’s intention to earn considerable tax income through vehicle imports.
On the contrary, importing vehicles will deny USD 1.05 billion to the state, said its executive member Dhanusha Pathirana at a party seminar in Galle yesterday (03).
He explained that the import levy income will come in rupees, which in turn will cause losses in dollar terms.
Noting the adverse impact on the working people by pacts with the IMF, Pathirana said loan interest payable by Sri Lanka for 2024 and 2025 alone would amount to 700 million USD.
The government’s agreement to pay back a two billion USD loan instalment to India and the decision to allow vehicle imports will give the impression to the world that the country’s economy was strong.
In light of such a situation, countries like India won’t agree for a halt to loan repayments, he said.
The country stands to lose as much as 4.3 billion USD this year due to this, he said, adding that more than 85 percent of the dollar reserves would have to be used up if this continues.
Then again, the people will have to shoulder an economic crisis and face an escalation of commodity prices, said Pathirana.
He urged the government to put off vehicle imports and loan repayment to India to avert serious implications towards the end of the year.
His colleague Lahiru Weerasekara too, addressed the event and alleged the incumbent was continuing with the same programme of his predecessor Ranil Wickremesinghe without a change after coming to power with a promise for an alternative sustainable debt review.
The pact with the IMF decides everything in the country, from the course of the economy to others as the unbearable taxes are imposed to fulfil its conditions, he said.
This programme will favour the crony business class and the American and Indian economic and defence strategies, he charged.
The government has now forgotten the mandate it has received to take decisions fearlessly, he said, and asked the government to explain the reasons.
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