2023-12-09
News Categories : Committee News
The Asia Internet Coalition (AIC), which represents key players in the internet industry and promotes the understanding and resolution of internet policy issues in the Asia-Pacific region, disclosed that the international standard for adopting VAT on software and digital service providers is based on the jurisdiction of the consumer, not the jurisdiction under which a particular business operates.
The afore stated matters were discussed when the Committee on Public Finance (COPF) took into consideration the impact of the implementation of provisions of the Value Added Tax (Amendment) Bill on domestic software and digital operators.
As an extension to a concern raised at the previous CoPF held, domestic and international software & digital service providers such as PickMe, Uber, AIC (representing Meta, Google, X, Booking.com, Amazon, etc) and Daraz were called before the Committee on Public Finance held recently (Dec. 07) Chaired by Member of Parliament Hon. (Dr.) Harsha de Silva.
It was disclosed that all such software and digital service providers are exempted from the application of VAT at present and with the Value Added Tax (Amendment) Bill coming into effect from the 1st of January 2024, all such exemptions will be removed and the applicability of such provisions will put on-shore service providers at a disadvantage as opposed to businesses that operate offshore.
The Committee was of the view that such a policy decision would discourage businesses from operating on-shore and thereby cause such businesses to move off-shore impacting government revenue and deterring new start-ups and digital service providers. Accordingly, the Committee directed the officials of the Ministry of Finance to look into the growing concern with the assistance of The Asia Internet Coalition (AIC) and to report to the Committee on a way forward on or before the 31st of December 2023.
Moreover, the Committee also took into consideration five Orders and a Resolution. Accordingly, the Resolution under Section 10 of the Customs Ordinance published in the Gazette Extra Ordinary No. 2347/06, and five Orders under the Special Commodity Levy Act, No. 48 of 2007 published under the Gazette Extra Ordinary Nos. 2345/64, 2346/16, 2348/44 and 2353/77 were taken up for discussion and approved by the Committee on Public Finance.
The Committee was of the view that the Ministry of Finance must have an in-depth analysis carried out with the assistance of all relevant institutions before making policy decisions related to the increase and decrease of taxes that impact vital essentials such as wheat and green gram.
Furthermore, the Committee also took into consideration the Regulations under the Colombo Port City Economic Commissions Act, No. 11 of 2021 pertaining to the Down – Town Duty Free intended to be established at the Port City Colombo.
Accordingly, the downtown duty-Free mall targets 70% of tourist consumers mainly from China and India, and will consist of premium luxury brands with 25 product categories including global brands.
Upon careful consideration by the Committee on Public Finance, it was observed that certain provisions stating which items can be imported under the Regulation are in the form of rules that are not legally binding. Therefore, the Committee believes that the Regulation needs to be revisited to avoid any gaps that may arise and prevent people from exploiting it. Accordingly, the members of the Colombo Port City Commission were instructed to rectify the discussed issues and present the revised version to the Committee.
State Minister Hon. (Dr.) (Mrs.) Seetha Arambepola and Members of Parliament Hon. Chandima Weerakkody, Hon. Mahindananda Aluthgamage, Hon. Wajira Abeywardana, Hon. Nimal Lanza, Hon. Premnath C. Dolawatte, Hon. Madhura Withanage were present at the Committee meeting held.
2025-02-16
The Local Authorities Elections (Special Provisions) Bill approved by the Ministerial Consultative Committee on Public Administration, Provincial Councils and Local Government. The approval was received when the Ministerial Consultative Committee on Public Administration, Provincial Councils and Local Government met in Parliament today (Feb. 14) under the chairmanship of Hon. Minister (Prof.) A.H.M.H. Abayaratne. The annual reports of the Distance Learning Center for the years 2021 and 2022 were also considered by the Committee and approved. The Hon. Deputy Minister Ruwan Senarath, Deputy Ministers, Members of the Committee, Hon. Opposition Leader Sajith Premadasa, Members of Parliament and government officials were present in this committee meeting.
2025-02-13
A meeting to discuss the Action Plan of the Women Parliamentarians’ Caucus was held on 07.02.2025 under the patronage of Hon. Prime Minister Dr. Harini Amarasuriya and the Chairperson of the Caucus Hon. Minister of Women and Child Affairs, Mrs. Saroja Savitri Paulraj. The Caucus discussed the possibility of enhancing women’s representation by achieving 25% women’s representation at the Provincial Level. Accordingly, the Caucus looked at the mechanisms of bringing in amendments to the prevailing law for the implementation of the said proposal at the upcoming election. The Women Parliamentarians’ Caucus also decided on meeting with various political parties and party secretaries to demand the appointment of women and increase women representation in the Provincial and Local Government bodies. Moreover, matters such as the elimination of sexual harassment at the workplace and the elimination of Sexual and Gender Based Violence (SGBV) was also taken into consideration. During the meeting, plans to mark the International Women’s Day which falls on March 8th, were also discussed. Deputy Co-Chairpersons of the Caucus Hon. Member of Parliament (Mrs.) Chamindrani Kiriella (Attorney-at-Law) and Hon. Member of Parliament (Mrs.) Samanmali Gunasinghe and Members of Parliament, (Mrs.) Rohini Kumari Wijerathna, (Mrs.) Geetha Herath, Attorney at Law, (Mrs.) Sagarika Athauda (Attorney-at-Law), (Ms.) (Dr) Kaushalya Ariyarathne, (Mrs.) Oshani Umanga, (Ms.) Krishnan Kalaichelvi, (Mrs.) Nilanthi Kottahachchi (Attorney-at-Law), (Mrs.) M.A.C.S. Chathuri Gangani, Nilusha Lakmali Gamage, (Mrs.) A.M.M.M. Rathwaththe, (Mrs.) Deepthi Wasalage, (Mrs.) Hiruni Wijesinghe (Attorney-at-Law), (Ms.) Ambika Samivel and (Ms.) Lakmali Hemachandra (Attorney-at-Law) were also present at this meeting.
2025-02-13
A joint initiative between the Fisheries and Trade Ministries to sell fish through the Lanka Sathosa ChainMinistry of Fisheries to extend attention regarding the renovation of existing ports in the northern and eastern provinces The Hon. Minister of Fisheries, Aquatic and Ocean Resources, Ramalingam Chandrasekar stated that necessary measures are being taken to prevent Indian fishermen from illegally entering Sri Lankan territorial waters.He expressed these views during the first meeting of the Ministerial Consultative Committee on Fisheries, Aquatic and Ocean Resources which was held in Parliament, recently (Feb. 07) under his Chairmanship. The Hon. Deputy Minister of Fisheries, Aquatic and Ocean Resources, Rathna Gamage, was also present at the Committee meeting held.Accordingly, the Hon. Minister Ramalingam Chandrasekar stated that discussion is underway with Tamil Nadu and the Indian High Commissioner to resolve this issue regarding Indian fishermen. He further mentioned that a swift resolution to this issue, which has affected local fishermen, would be provided without resorting to conflicts.Furthermore, extensive discussions were also held on initiating a joint program between the Ministries of Fisheries and Trade to sell fish through Lanka Sathosa. Expressing his views on this matter, the Hon. Minister of Trade, Commerce, Food Security and Cooperative Development, Wasantha Samarasinghe, stated that there are plans to expand Lanka Sathosa network in the future and that the necessary arrangements could be made to sell fish through these stores. Officials representing the Ceylon Fisheries Corporation, commenting on the matter, stated that they are looking forward to promptly implementing the required measures to sell fish through Lanka Sathosa. Accordingly, they further stated that plans are in place to package the relevant fish varieties in a manner that makes them more convenient for consumers to prepare.During this meeting, various issues pertaining to the fisheries industry across the country were brought to the attention of the relevant officials by the Hon. Members of Parliament. Extensive discussions were held within the Committee on matters such as illegal fishing using prohibited nets and dynamite, issues related to Freshwater fisheries, and issues pertaining to domestic harbors. Expressing his views, the Committee Chair instructed the relevant officials to take necessary actions regarding the said issues. Additionally, he stated that the Ministry is paying more attention to the renovation of harbors in the Northern and Eastern provinces and is working towards resolving the existing issues.Moreover, The Annual Report of the Fishery Board Statutory Corporation for the year 2021 and the Annual Performance Report of the Department of Fisheries and Aquatic Resources for the year 2023 were also considered and approved in the Committee.This committee meeting was attended by Hon. Ministers, Hon. Deputy Ministers, Committee Members including Hon. Members of Parliament, and officials from the Ministery of Fisheries, Aquatic and Ocean Resources, among others.
2025-02-07
Hon. Deputy Minister of Provincial Councils and Local Government, P. Ruwan Senarath to lead the Sub-Committee The Chair of the Ministerial Consultative Committee on Public Administration, Provincial Councils and Local Government Hon. Minister of Public Administration, Provincial Councils and Local Government (Prof.) A.H.M.H. Abayarathna recommended the establishment of a special sub-Committee consisting of 08 members to identify the necessary policy changes in the public service. This was special sub-committee established when the Ministerial Consultative Committee on Public Administration, Provincial Councils and Local Government met recently (Feb. 05) under the Chairmanship of the Hon. Minister (Prof.) A.H.M.H. Abayarathna in the Parliament premises. The subcommittee was established under the leadership of the Hon. Deputy Minister of Provincial Councils and Local Government, P. Ruwan Senarath. Hon. Members of Parliament Chandana Sooriyaarachchi, Ajantha Gammeddage, Dharmapriya Dissanayake, Dinindu Saman, (Mrs.) Geetha Herath, Attorney at Law, Lal Premanath and Muhammad Faizal were appointed as the other members to the said Committee. The primary objective of this subcommittee is to conduct the necessary investigations and identify policy changes required in key aspects of the public service, such as appointments, competitive examinations, retirements, and vacancies. The findings and recommendations will be submitted to the Ministerial Consultative Committee. The need for such a subcommittee was initially proposed by Hon. Member of Parliament Chandana Sooriyaarachchi, following which the Chairman approved the appointment. Additionally, discussions were held regarding existing vacancies in Divisional Secretariat Offices and Local Government institutions. Officials who attended the meeting highlighted that in 2024, the services of 8,435 individuals in Local Government institutions has been made permanent. Furthermore, a comprehensive staff review of all Local Government institutions is currently underway, with the final report expected by March 31, 2025. Once completed, the relevant data will be provided to the Department of Management Services for necessary appointments. Officials also clarified that employees recruited for specific projects will not be made permanent. Moreover, discussions were held regarding the competitive examination process for appointing Grama Niladhari officials. Members of Parliament and government officials including members of the committee were present at this Committee meeting held.
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