The Committee on Public Finance granted approval yesterday to issue Rs. 1,000 billion Treasury Bills, under the Local Treasury Bills Ordinance which is scheduled to be presented to Parliament for approval shortly.
The Committee on Public Finance chaired by MP Anura Priyadarshana Yapa met yesterday. Government officials were connected online for the meeting in accordance with health regulations given the prevailing COVID-19 situation.
State Minister Susil Premajayantha, and MPs Dilan Perera, Ranjith Bandara, Mujibur Rahuman, Dr. Harsha de Silva, Anupa Pasqual, Isuru Dodangoda, and Nalin Fernando were present at the Committee meeting held.
Secretary to the Treasury and Ministry of Finance S.R. Attygalle expressing his views stated that an increase to Rs. 3,000 billion from the current limit of Rs. 2 trillion is thus expected.
He further said that this does not imply that the money will be spent within the coming six months and that everything will be managed within the borrowing limit approved by the Parliament.
The Committee also approved two regulations to be tabled in Parliament under Imports and Exports (Control) Act No. 1 of 1969 presented to Parliament on 8 June.
The Secretary to the Treasury and Ministry of Finance further stated that given the context where tax relief has been granted for imported vehicles under the category of special purpose vehicles, this opportunity given is often misused.
The Secretary pointed out that the Government incur a great loss in terms of tax revenue as it has now been identified that vehicles imported under the category of special purpose vehicles are being used as ordinary purpose vehicles.
He further explained that last year alone, 947 freezer trucks were imported and that it has been reported that most of the imported freezer trucks remove the refrigerators after importation and used them as ordinary lorries. Accordingly, steps have been taken to revise the relevant taxes by these regulations.
Expressing views, Parliamentarian Nalin Fernando stated that a situation of tax evasion on technical matters pertaining to the margarine importation has also risen. The Secretary to the Ministry of Finance told the Committee that this is expected to be done in the future under a new methodology.
Parliamentarian Dr. Harsha de Silva inquired from the Secretary to the Ministry of Finance regarding a statement made by the Minister of Energy Udaya Gammanpila regarding notion that the country is currently in an economic crisis.
Responding to it the Secretary to the Ministry of Finance stated that despite certain economic concerns that may arise given the current situation, every effort will be made to manage such concerns properly.
Further, the proposal to increase the salaries and allowances of the members including the Chairman of the Office of the Missing Persons which was rejected at the last Committee meeting was approved at the Committee meeting held yesterday after taking all factors into consideration.
(FT)