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Oral Questions - Thursday 23rd July 2009

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QUESTIONS FOR ORAL ANSWERS

To be raised by the Hon. Ravi Karunanayake when
Parliament meets on Thursday 23rd July 2009



1.    0011/’09
Hon. Ravi Karunanayake, – To ask the Minister of Finance and Planning,–

(a)    Will he inform this House –

(i)    all the direct and indirect taxes in operation as of today; and

Answer:

Direct Taxes
Income Tax, Economic Service Charge, Stamp Duty, Debit Tax, Betting and Gaming Levy, Land Transfer Tax and Licence Tax.

Indirect Taxes
Value Added Tax, Excise Duty, Excise (Special Provisions) Duty, Import Duty, Export Duty, Cess Levy, Ports and Airport Development Levy, Regional Infrastructure Development Levy, Social Responsibility Levy, Special Commodity Levy, Share Transaction Levy and Nation Building Tax.


(ii)    the rupee value of the impact of the tax using rates as of today?

Answer:

Tax Revenue – Item: Income Tax
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 42,760

Tax Revenue – Item: Stamp Duty
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 1,105

Tax Revenue – Item: Debit Tax
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 2,383

Tax Revenue – Item: Betting and Gaming Tax
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 22

Tax Revenue – Item: Share Transaction Levy
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 83

Tax Revenue – Item: Licence Taxes
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 1,051

Tax Revenue – Item: Value Added Tax
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 54,021

Tax Revenue – Item: Excise Duty
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 9,300

Tax Revenue – Item: Excise (Special Provisions) Duty
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 16,415

Tax Revenue – Item: Import Duty
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 20,598

Tax Revenue – Item: Export Duty
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 47

Tax Revenue – Item: Cess Levy
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 8,513

Tax Revenue – Item: Ports and Airports Development Levy
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 9,843

Tax Revenue – Item: Social Responsibility Levy
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 955

Tax Revenue – Item: Regional Infrastructure Development Levy
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 203

Tax Revenue – Item: Special Commodity Levy
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 7,293

Tax Revenue – Item: Nation Building Tax
1st Quarter 2009 – Up to 30.04.09 (Rs. Million): 2,492


(b)    Will he state separately –

(i)    all the taxes imposed on rice, sugar, dhal, milk powder, wheat flour, petrol, diesel and kerosene oil, canned fish, onions, electricity and bank loan as of today; and

Answer:

As at 31st May 2009

Item: Rice
Custom Duty: Rs. 20/- per kg.
Value Added Tax (VAT): Exempt
Ports and Airport Development Levy (PAL): 5%
Social Responsibility Levy (SRL): 1.5%
Import Duty Surcharge: Nil
Cess: Nil
Excise: Nil
Special Commodity Levy: Nil
Nation Building Levy: Nil

Item: Sugar
Custom Duty: Nil
Value Added Tax (VAT): Nil
Ports and Airport Development Levy (PAL): Nil
Social Responsibility Levy (SRL): Nil
Import Duty Surcharge: Nil
Cess: Nil
Excise: Nil
Special Commodity Levy: Rs. 16/- per kg.
Nation Building Levy: Nil

Item: Dhal
Custom Duty: Nil
Value Added Tax (VAT): Nil
Ports and Airport Development Levy (PAL): Nil
Social Responsibility Levy (SRL): Nil
Import Duty Surcharge: Nil
Cess: Nil
Excise: Nil
Special Commodity Levy: Rs. 16/- per kg.
Nation Building Levy: Nil

Item: Chick Peas
Custom Duty: Nil
Value Added Tax (VAT): Nil
Ports and Airport Development Levy (PAL): Nil
Social Responsibility Levy (SRL): Nil
Import Duty Surcharge: Nil
Cess: Nil
Excise: Nil
Special Commodity Levy: Rs. 35/- per kg.
Nation Building Levy: Nil

Item: Milk Powder
Custom Duty: Rs. 125/- However a waiver is granted for the excess amount over 125/-
Value Added Tax (VAT): 12%
Ports and Airport Development Levy (PAL): 5%
Social Responsibility Levy (SRL): 1.5%
Import Duty Surcharge: Nil
Cess: Nil
Excise: Nil
Special Commodity Levy: Nil
Nation Building Levy: Nil

Item: Wheat Flour
Custom Duty: 15% or Rs. 16/- per kg.
Value Added Tax (VAT): Exempt
Ports and Airport Development Levy (PAL): 5%
Social Responsibility Levy (SRL): 1.5%
Import Duty Surcharge: Nil
Cess: 5%
Excise: Nil
Special Commodity Levy: Nil
Nation Building Levy: Nil

Item: Petrol
Custom Duty: Rs. 35/- per litre (Rs. 10/- VAT Exemption has been given)
Value Added Tax (VAT): 5%
Ports and Airport Development Levy (PAL): 5%
Social Responsibility Levy (SRL): 1.5%
Import Duty Surcharge: 15%
Cess: Nil
Excise: Rs. 25/- per litre
Special Commodity Levy: Nil
Nation Building Levy: Nil

Item: Diesel
Custom Duty: Rs. 15/- per litre
Value Added Tax (VAT): Exempt
Ports and Airport Development Levy (PAL): 5%
Social Responsibility Levy (SRL): 1.5%
Import Duty Surcharge: 15%
Cess: Nil
Excise: Rs. 2.50 per litre
Special Commodity Levy: Nil
Nation Building Levy: Nil

Item: Kerosene Oil
Custom Duty: Exempt
Value Added Tax (VAT): Exempt
Ports and Airport Development Levy (PAL): 5%
Social Responsibility Levy (SRL): 1.5%
Import Duty Surcharge: 15%
Cess: Nil
Excise: Nil
Special Commodity Levy: Nil
Nation Building Levy: Nil

Item: Canned Fish
Custom Duty: Nil
Value Added Tax (VAT): Nil
Ports and Airport Development Levy (PAL): Nil
Social Responsibility Levy (SRL): Nil
Import Duty Surcharge: Nil
Cess: Nil
Excise: Nil
Special Commodity Levy: Rs. 85/- per kg.
Nation Building Levy: Nil

Item: Red Onions
Custom Duty: Rs. 5/- per kg.
Value Added Tax (VAT): 5%
Ports and Airport Development Levy (PAL): 5%
Social Responsibility Levy (SRL): 1.5%
Import Duty Surcharge: Nil
Cess: Nil
Excise: Nil
Special Commodity Levy: Nil
Nation Building Levy: Nil

Item: Big Onions
Custom Duty: Nil
Value Added Tax (VAT): Nil
Ports and Airport Development Levy (PAL): Nil
Social Responsibility Levy (SRL): Nil
Import Duty Surcharge: Nil
Cess: Nil
Excise: Nil
Special Commodity Levy: Rs. 25/- per kg.
Nation Building Levy: Nil

Item: Electricity
Custom Duty: Nil
Value Added Tax (VAT): Nil
Ports and Airport Development Levy (PAL): Nil
Social Responsibility Levy (SRL): Nil
Import Duty Surcharge: Nil
Cess: Nil
Excise: Nil
Special Commodity Levy: Nil
Nation Building Levy: Nil

Item: Bank Loans
Custom Duty: Nil
Value Added Tax (VAT): Nil
Ports and Airport Development Levy (PAL): Nil
Social Responsibility Levy (SRL): Nil
Import Duty Surcharge: Nil
Cess: Nil
Excise: Nil
Special Commodity Levy: Nil
Nation Building Levy: Nil


(ii)    a comparison of those figures as at –
§    15th August, 1994
§    15th December, 2001
§    2nd April, 2004
§    1st December, 2005
§    to-date?

Answer:

1994 August

Item: Rice
Custom Duty: 35%
Business Turnover Tax: Nil
Excise Duty: Nil

Item: Sugar
Custom Duty: 35%
Business Turnover Tax: 5%
Excise Duty: Nil

Item: Dhal
Custom Duty: 35%
Business Turnover Tax: Nil
Excise Duty: Nil

Item: Milk Powder
Custom Duty: 20%
Business Turnover Tax: Nil
Excise Duty: Nil

Item: Wheat Flour
Custom Duty: 35%
Business Turnover Tax: 5%
Excise Duty: Nil

Item: Petrol
Custom Duty: 35%
Business Turnover Tax: 20%
Excise Duty: Rs. 7/- per litre

Item: Diesel
Custom Duty: 35%
Business Turnover Tax: 5%
Excise Duty: Rs. 1/- per litre

Item: Kerosene Oil
Custom Duty: 10%
Business Turnover Tax: 5%
Excise Duty: Nil

Item: Canned Fish
Custom Duty: 10%
Business Turnover Tax: Nil
Excise Duty: 5%

Item: Big Onions
Custom Duty: 35%
Business Turnover Tax: 20%
Excise Duty: 10%

Item: Electricity
Custom Duty: Nil
Business Turnover Tax: 5%
Excise Duty: Nil

Item: Bank Loans
Custom Duty: Nil
Business Turnover Tax: Nil
Excise Duty: Nil


December 2001

Item: Rice
Custom Duty: 35%
Excise Duty: Nil
Goods and Services Tax (GST): Nil

Item: Sugar
Custom Duty: Rs. 3.50 per kg.
Excise Duty: Nil
Goods and Services Tax (GST): Nil

Item: Dhal
Custom Duty: Nil
Excise Duty: Nil
Goods and Services Tax (GST): Nil

Item: Milk Powder
Custom Duty: Nil
Excise Duty: Nil
Goods and Services Tax (GST): Nil

Item: Wheat Flour
Custom Duty: Nil
Excise Duty: Nil
Goods and Services Tax (GST): Nil

Item: Petrol
Custom Duty: 25%
Excise Duty: Rs. 24/- per litre
Goods and Services Tax (GST): Nil

Item: Diesel
Custom Duty: 25%
Excise Duty: Rs. 4/- per litre
Goods and Services Tax (GST): Nil

Item: Kerosene Oil
Custom Duty: 25%
Excise Duty: Nil
Goods and Services Tax (GST): Nil

Item: Canned Fish
Custom Duty: Nil
Excise Duty: Nil
Goods and Services Tax (GST): Nil

Item: Big Onions
Custom Duty: Nil
Excise Duty: Nil
Goods and Services Tax (GST): Nil

Item: Electricity
Custom Duty: Nil
Excise Duty: Nil
Goods and Services Tax (GST): 12.5%

Item: Bank Loans
Custom Duty: Nil
Excise Duty: Nil
Goods and Services Tax (GST): Nil


2004 April

Item: Rice
Custom Duty: Rs. 9/- per kg.
Value Added Tax (VAT): Nil
Excise Duty: Nil

Item: Sugar
Custom Duty: Rs. 4.50 per kg.
Value Added Tax (VAT): 5%
Excise Duty: Nil

Item: Dhal
Custom Duty: 3%
Value Added Tax (VAT): 5%
Excise Duty: Nil

Item: Milk Powder
Custom Duty: 27.50%
Value Added Tax (VAT): No Charge
Excise Duty: Nil

Item: Wheat Flour
Custom Duty: 12%
Value Added Tax (VAT): No Charge
Excise Duty: Nil

Item: Petrol
Custom Duty: Exempt
Value Added Tax (VAT): 15%
Excise Duty: Rs. 20/- per litre

Item: Diesel
Custom Duty: Exempt
Value Added Tax (VAT): 15%
Excise Duty: Rs. 2.50 per litre

Item: Kerosene Oil
Custom Duty: Exempt
Value Added Tax (VAT): No Charge
Excise Duty: Rs. 1.25 per litre

Item: Canned Fish
Custom Duty: 16%
Value Added Tax (VAT): 15%
Excise Duty: Nil

Item: Big Onions
Custom Duty: Rs. 8/- per kilo
Value Added Tax (VAT): 15%
Excise Duty: Nil

Item: Electricity
Custom Duty: Nil
Value Added Tax (VAT): Nil
Excise Duty: Nil

Item: Bank Loans
Custom Duty: Nil
Value Added Tax (VAT): Nil
Excise Duty: Nil


2005 December

tem: Rice
Import Duty Surcharge: Nil
Custom Duty: Rs. 9/- per kg.
Value Added Tax (VAT): Exempt
Excise Duty: Nil
Cess: Nil
Ports and Airport Development Levy (PAL): 1.5%
Social Responsibility Levy: 0.25%

Item: Sugar
Import Duty Surcharge: Nil
Custom Duty: Rs. 4.50 per kg.
Value Added Tax (VAT): 5%
Excise Duty: Nil
Cess: Nil
Ports and Airport Development Levy (PAL): 1.5%
Social Responsibility Levy: 0.25%

Item: Dhal
Import Duty Surcharge: Nil
Custom Duty: 3%
Value Added Tax (VAT): 5%
Excise Duty: Nil
Cess: Nil
Ports and Airport Development Levy (PAL): 1.5%
Social Responsibility Levy: 0.25%

Item: Milk Powder
Import Duty Surcharge: 10%
Custom Duty: 28%
Value Added Tax (VAT): Exempt
Excise Duty: Nil
Cess: Nil
Ports and Airport Development Levy (PAL): 1.5%
Social Responsibility Levy: 0.25%

Item: Wheat Flour
Import Duty Surcharge: 10%
Custom Duty: 15%
Value Added Tax (VAT): Exempt
Excise Duty: Nil
Cess: Nil
Ports and Airport Development Levy (PAL): 1.5%
Social Responsibility Levy: 0.25%

Item: Petrol
Import Duty Surcharge: 10%
Custom Duty: Nil
Value Added Tax (VAT): 15%
Excise Duty: Rs. 20/- per litre
Cess: Nil
Ports and Airport Development Levy (PAL): 1.5%
Social Responsibility Levy: 0.25%

Item: Diesel
Import Duty Surcharge: 10%
Custom Duty: Nil
Value Added Tax (VAT): 15%
Excise Duty: Rs. 2.50 per litre
Cess: Nil
Ports and Airport Development Levy (PAL): 1.5%
Social Responsibility Levy: 0.255

Item: Kerosene Oil
Import Duty Surcharge: 10%
Custom Duty: Nil
Value Added Tax (VAT): Exempt
Excise Duty: Rs. 1.25 per litre
Cess: Nil
Ports and Airport Development Levy (PAL): 1.5%
Social Responsibility Levy: 0.25%

Item: Canned Fish
Import Duty Surcharge: 10%
Custom Duty: 15%
Value Added Tax (VAT): 15%
Excise Duty: Nil
Cess: Nil
Ports and Airport Development Levy (PAL): 1.5%
Social Responsibility Levy: 0.255

Item: Big Onions
Import Duty Surcharge: Nil
Custom Duty: Rs. 10/- per kg.
Value Added Tax (VAT): 5%
Excise Duty: Nil
Cess: Nil
Ports and Airport Development Levy (PAL): 1.5%
Social Responsibility Levy: 0.25%

Item: Electricity
Import Duty Surcharge: Nil
Custom Duty: Nil
Value Added Tax (VAT): 15%
Excise Duty: Nil
Cess: Nil
Ports and Airport Development Levy (PAL): Nil
Social Responsibility Levy: Nil

Item: Bank Loans
Import Duty Surcharge: Nil
Custom Duty: Nil
Value Added Tax (VAT): Nil
Excise Duty: Nil
Cess: Nil
Ports and Airport Development Levy (PAL): Nil
Social Responsibility Levy: Nil



(c)    Will he also state the resource value of the impact of the tax using rates as at today?



(d)    If not, why?




2.    0012/’09
Hon. Ravi Karunanayake, – To ask the Minister of Irrigation and Water Management and Minister of Ports and Aviation, –

(a)    Will he inform this House –

(i)    the date that the Mihin Air was incorporated;

Answer:

26th October 2006


(ii)    the date it had the first commercial flight; and

Answer:

24th April 2007


(iii)    names of the Directors of Mihin Air from the inception to date?

Answer:

Mr. Nandasena Gotabaya Rajapaksha – Resigned with effect from 30th May 2008
Mr. Sajin De Vass Gunawardena – Resigned with effect from 29th May 2008
Mr. Lalith Weeratunga – Resigned with effect from 30th May 2008
Mr. Surendra Ediriweera – Resigned with effect from 2nd December 2008
Air Marshall W.D.R.M.J. Goonathilake
Mr. Chandana Liyanapatabendy
Dr. Ranepura Hewage Samantha Samaratunga
Mr. Raja Edirisuriya – Appointed with effect from 8th September 2008
Mr. Arumadura Sarath De Silva – Appointed with effect from 8th September 2008
Mr. Hemal Talgaswatte – Appointed with effect from 8th September 2008
Mr. Kapila Chandrasena – Appointed with effect from 2nd December 2008
Nishantha Wickremasinghe – Appointed with effect from 12th May 2009



(b)    Will he state per person and per year basis the emoluments, tickets used on Mihin Airline, tickets paid for on the other air lines and any other perks given to each person?

Answer:

Only Mr. Sajin De Vass Gunawardena drew emoluments and other Directors did not draw any emoluments from the Company.

Mr. S.V. Gunawardena – Managing Director/Chief Executive Officer

January 2007 – December 2007
Rs. 450,000/- per month x 12 = Rs. 5,400,000/- per annum

January 2008 – April 2008
Rs. 450,000/- per month x 04 = Rs. 1,800,000/-

Total – Rs. 7,200,000/- + a Vehicle maintained by the Company and Fuel


Tickets used on Mihin Lanka flights by Directors were tabled.


Tickets paid on other Airlines for Directors were tabled.


Directors of Mihin Lanka did not draw any other perks.


(c)    Will he also state –

(i)    any other benefits given and has to be given; and

Answer:

No other benefits were given or has been given.


(ii)    the total Net Profit and Gross Profit per month from the date it was operated?

Answer:

A document containing the Total Net Profit and Gross Profit of Mihin Lanka for the period 01.04.2007 to 31.03.2008 was tabled.

Financial Audit for the year ended 2008/2009 is in progress.


(d)    If not, why?

Answer:

Does not arise




3.    0064/’09
Hon. Ravi Karunanayake, – To ask the Minister of Industrial Development, –

(a)    Will he inform this House –

(i)    the number of salt producing companies in Sri Lanka;

Answer:

Mainly there are four Salt producing companies in Sri Lanka.

Lanka Salt Limited
Puttalam Salt Limited
Puttalam Salt Production Welfare Society Limited
Mantai Salt Limited


(ii)    their locations and production capacity; and

Answer:

Name of Company: Lanka Salt Limited
Location: Hambantota Maha Lewaya, Bundala Saltern, Palatupana Salterns
Production Capacity (Metric Tons): 80,000 approximately

Name of Company: Puttalam Salt Limited
Location: Palavi (Puttalam)
Production Capacity (Metric Tons): 25,000

Name of Company: Puttalam Salt Productions Welfare Society Limited
Location: Mannar Road, Puttalam
Production Capacity (Metric Tons): 30,000 approximately

Name of Company: Mantai Salt Limited
Location: Mannar Saltern, Chemmani Saltern
Production Capacity (Metric Tons): 4,600



(iii)    the names of the owners of these companies?

Answer:

Name of the Company: Lanka Salt Limited
Names of the Owners:
Employee Trust Fund Board – 90%,
Employees of Lanka Salt Limited – 10%

Name of the Company: Puttalam Salt Limited
Names of the Owners:
Gampaha District Co-operative Rural Bank Society
Wayamba Co-operative Society
Raigam Marketing Services
Pan Serendib Private Limited
Central Province Co-operative Rural Bank Society
Sri Lanka Consumer Co-operative Society Foundation Limited
Minority Shareholders (0.1%)

Name of the Company: Puttalam Salt Production Welfare Society Limited
Names of the Owners:
369 members of Puttalam Salt Production Welfare Society hold ownership

Name of the Company: Mantai Salt Limited
Names of the Owners:
It is a 100% Government owned Company coming under the purview of the Ministry of Industrial Development.


(b)    Will he state –

(i)    the demand of salt in Sri Lanka for the last 20 years per year basis;

Answer:

Year: 1999
Demand per metric ton (Approximately): 90,248

Year: 2000
Demand per metric ton (Approximately): 94,282

Year: 2001
Demand per metric ton (Approximately): 170,901

Year: 2002
Demand per metric ton (Approximately): 127,363

Year: 2003
Demand per metric ton (Approximately): 116,685

Year: 2004
Demand per metric ton (Approximately): 125,610

Year: 2005
Demand per metric ton (Approximately): 119,634

Year: 2006
Demand per metric ton (Approximately): 123,578

Year: 2007
Demand per metric ton (Approximately): 135,922

Year: 2008
Demand per metric ton (Approximately): 186,306


(ii)    the total import of salt to Sri Lanka for the last 10 years per year basis; and

Answer:

As per the details supplied by the Sri Lanka Customs, the total import of Salt to Sri Lanka for the last 09 years are given below.

Year: 2000
Quantity of Importation of Salt (Metric Tons): 5,595.4

Year: 2001
Quantity of Importation of Salt (Metric Tons): 23,608.6

Year: 2002
Quantity of Importation of Salt (Metric Tons): 9,264.5

Year: 2003
Quantity of Importation of Salt (Metric Tons): 7,341.1

Year: 2004
Quantity of Importation of Salt (Metric Tons): 6,862.7

Year: 2005
Quantity of Importation of Salt (Metric Tons): 5,140.5

Year: 2006
Quantity of Importation of Salt (Metric Tons): 6,274.3

Year: 2007
Quantity of Importation of Salt (Metric Tons): 8,922.4

Year: 2008
Quantity of Importation of Salt (Metric Tons): 49,617.4


(iii)    the rupee value of above imports for the last 5 years?

Answer:

The Rupee value of the above Imports for the last five years

Year: 2004
Value of Importation of Salt (Rs. Million): 40.90

Year: 2005
Value of Importation of Salt (Rs. Million): 33.3

Year: 2006
Value of Importation of Salt (Rs. Million): 45.1

Year: 2007
Value of Importation of Salt (Rs. Million): 66.6

Year: 2008
Value of Importation of Salt (Rs. Million): 381.0



(c)    If not, why?

Answer:

Does not arise