Ravi K warns companies not paying bonuses due to Super Gains Tax

Ravi-Karunanayake

Oct 20, 2015 (LBO) – Sri Lanka’s Finance Minister Ravi Karunanayake told Parliament Tuesday that the government is in search for big companies that are not paying bonus payments to employees.

“I was disappointed with some of the companies that pretended to be paying Super Gains Tax and stop certain payments,” he said.

“There is no right for any of them to deprive any money going out to the hard working employees of their company.”

Karunanayake revealed there are 2 or 3 corporate companies that have already mentioned they are not going to pay bonus payments this year due to the tax.

“We’ll look to those companies and see how decent those companies are,” he said.

“If they pay for themselves bonuses and deprived the people who are working under them by saying it is a government imposition; I think that is very unfair,” Karunanayake said.

“We call upon them to ensure if they had a wrong interpretation, correct it now,” he insisted.

The government is to collect between 65 to 70 billion rupees from the Super Gains Tax imposed through 35 big corporates in Sri Lanka.

Subscribe
Notify of
guest
16 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Shee Lankan
Shee Lankan
6 years ago

With this type of regulatory risk how can one expect FDI`s ? If Apple and Samsung were Sri Lankan companies they would have never grown to what they are today. Create a level playing field and dont use selective and arbitrary taxation.

Neo
Neo
6 years ago

geez, is this the economic wisdom of UNP that we hear everyday from its ardent followers. OK till 2015 UNP had a descent track record of economy and a terrible track record of all others. After the 2015 desperation they are messing up the economy in grand style.

Prem Nath
Prem Nath
6 years ago
Reply to  Neo

Yep,until 2015 UNP had a decent track record because they were hardly the ruling party.Even there they were messy.

anon
anon
6 years ago

🙁 Re Ravi mishandling a lot of things.
A Bonus be definition is discretionary.
And these super gains tax, is retrospective? Is *that* fair for the owners, and the mangers that are the agents of the owners?
Ravi also spoke about “managing” the exchange rate.
We also saw a haphazard implementation of “things” vis-a-vis importation of cars – clearly without much thought.
The “mid night bandit” of raising taxes continues (of liquor etc) – instead of using the budget to set clear direction.

Must get the message through to our PM through friends about quite clear bungling by this Minister.

Rapa
Rapa
6 years ago

This is really disgusting. Why is the government treating the private companies like state owned enterprises. The government in turn must find out the culprits who have hacked the economy and ruined the state enterprises and bring them to book. The well managed private sector has to fork out for the mismanagement and corruption via the super gains tax! Absurd!

prasanna.t
prasanna.t
6 years ago

Leave the Co alone and let them do what they like. Who are you to warn them?

Prem Nath
Prem Nath
6 years ago

This guy has never had any experience handling economy and the Prime Minister seems to be non the worse of it.Shame, Sri Lankans have to put up with this type of Highway robbery for at least another four and a half years.

Prem Nath
Prem Nath
6 years ago

High time the private sector takes this guy to the courts for threatening the private sector.RK is not himself a decent person.

NPathirana
NPathirana
6 years ago

This Tax is called Jealous Tax. Totally Wrong Policy. These Companies show good profits due to 2 things 1. Proper unhidden accounting. 2. Good Management. And Ravi K is penalising that by taxing it. What a mistake.

Private sector will be afraid to show profits hereafter, maybe even close shop.

NPathirana
NPathirana
6 years ago

Why not Tax Millions who evade taxes, How many Consultant Doctors, Tution masters, Politicians who make Millions a Month (Sometimes Millions a day) are paying taxes ? Why Govt sector is exempted from tax even after giving them tax free vehicle permits ??

rookie
rookie
6 years ago

seems RK doesnt understand the basics. Companies make profits – makes distributions and investments from this. who gets the benefits??? govt and citizens / society and economy? no one will keep idle funds in C/A – where will it end – bills and bonds – where is that money going to – the govt. the problem here is the govt wants this to own and not to repay. OK – so then why not create some investment pool with the private banks and get investors to get loans at concesionery rates – this will create finances to the govt which is trying on itself to get????

this whole act is a compromise – noe one can be ego centric and do things as they wish. everyone should be in the part of the game.

this is what happens – when we send people to represent us – who do not know to the job in the 1st place or have the maturity to learn and understand and proceed. this is not a kopi kade where the mudalali takes decisions on his own!!!

Rupe
Rupe
6 years ago

Deep and inside, Ravi is a Maxist. He is there just to destroy the UNP. Why can’t our UNP leaders understand this?

rookie
rookie
6 years ago
Reply to  Rupe

agree – he wants to bring in redistribution of wealth. i dont understand when a country like ours require not tighter controls. i am one for capitalism with allocation to socialist practice. there is nothing as a free lunch. i dont think apart from education / health and infrastructure – the government should NOT get involved in managing other sectors. let them have 51% if they wish – but balance be private sector model. let the professionals run the show. the government is full of academics who have never tested water!

Jehan
Jehan
6 years ago
Reply to  Rupe

Seriously? These guys are not Marxists nor Capitalists. Do you think just because he has underhand deals with Anura Kumara that he’s a marxist?

Palitha
Palitha
6 years ago

This is karma in a way. The biggest problem we had in Sri Lanka was the war and a government came from nowhere and finished it in 3 years much to the surprise of everyone. What should have been done was to grant that government at-least another 2 terms because well this is all about getting shit done not academical BS. No our people specially the Colombo centrist elites and corporate citizen wanted a “change” and “good governance” which was a cover to bring in their traditional party of support to power. Just pathetic politics.

The “change” promised too many tax breaks and fairy tales that the only avenue for the government was to tax the same ungrateful corporate citizen to cover the additional expenditure. Yeah this is karma.

Amarasena
Amarasena
6 years ago

Judging by the comments posted here, it’s not difficult to understand what’s wrong with Sri Lanka – every Banda, Sira and Paala thinks that they understand economics. Where art thou, Fussus Budgetorius?