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Taxes won’t be increased to finance pay hikes – FM

Finance and State Revenue Minister Ranjith Siyambalapitiya yesterday told Parliament that government would not increase any taxes to finance the promised salary increments to the armed forces and public servants next January.

Minister Siyambalapitiya, in a reply to questions raised by Chief Opposition Whip Joseph Michael Perera, during a special statement on government’s promises to grant salary increments to public servants and the armed forces, said that the funds allocation to give this increment have been included in the Vote-on-Account being debated in the House.

President Mahinda Rajapaksa addressing SLFP national convention held at the Temple Trees on November 03rd announced that salaries of public servants would be increased from next January. The increment comes into effect from November 2009 and the arrears for the last two months of this year too would be paid. For this purpose Rs. 7,000 million had been allocated in the Vote on Account.

MP Joseph Michael Perera, in a special statement, said that the President had made these promises to trick the public servants and to secure their support for the government.

He demanded to be told how these promises of salary increments could be realized.

MP Perera said the allocations made in the vote on Account would be sufficient only to maintain the pubic sector institutions. The employees of Water Board, CPC, CEB took to the streets demanding salary increments. It seems the government intends to silence these agitations with promises. "How does the government plans to find this huge amount of money to deliver its promises? Is it just another attempt to take the public sector employees for a ride?" he queried.

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