Taxing Tigers

Government is planning to take up the taxation issue with the LTTE as key donors to the island refuse to pay tax in any form.rn

rnThe issue is to be taken up at the next round of peace talks with the LTTE.rn

rnEconomists point out that development aid will be key to rebuilding war damaged infrastructure in the North and East province.rn

rnThough prices have come down sharply in the North after the cease-fire, goods going North are taxed by the LTTE at varying rates.rn

rnWhile end consumers bear the full tax at the retail end, attempts by the organization to tax development aid has met with stiff resistance. rn

rnldblquote The government has an understanding with the donors that they don
quote t have to pay taxes for what they bring in,
dblquote Treasury Secretary Charitha Ratwatte told journalists last week.rn

rnThe Asian Development Bank, the top multilateral donor to the country during the last few years says, its bank policy is not to pay taxes on its aid to any country.rn

rnldblquote ADB an