Thursday, 15 July 2004  
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The grand interest robbery by the UNP

To the earlier Minister of Finance and his Deputy, interest income was as vile and filthy as income earned through prostitution or selling kasippu and so they hunted down those whose only means of livelihood was the income they received from an investment.

Many people so affected made appeals through the newspapers but nothing would move these two callous officials and the extortion continued through what was euphemistically called a Withholding Tax.

When first introduced, anyone earning more than Rs. 6000 a month as interest income was subjected to a withholding tax. Later, it was made Rs. 9000 per month and the same tax continued. But the villainy was yet to come. A person earning Rs. 9000 paid no tax, but someone earning Rs. 9001 paid Rs. 900 as a monthly tax because of this one rupee!

It later came to be known that some unerring, almighty official of the Inland Revenue Department had so decreed it, and so like the laws of the Medes and the Persians it came to stay. Many appeals were made but nothing would move either the Minister or his Deputy or his official to levy this tax making allowance for the basic exemption. Such was the cruel and ludicrous nature of this tax law.

People solely dependant on interest incomes are persons over 60 years who have invested their Provident Funds, gratuities etc. and live on this interest income. They are senior citizens who have not only their households to look after but also invariably have to meet regular medical bills. My father, now 76 years, is one such.

A few years ago, he bought some debentures of a private bank which brought him about Rs. 11000 per month. He was happy because he felt that he was not a burden to us. But after this cruel tax, he lost Rs. 1100 per month. This devastated him, and in addition to his usual ill health, he went into depression and had to be treated for that too.

My simple question is how is Income Tax on interest income different from income tax on employment income? Surely income is income from whatever source. If employment income is taxed only beyond Rs. 20000 per month, why is interest income taxed at Rs. 9000 and in this manifestly unfair application of the law discriminating against senior citizens, why did the UNP government remain deaf and dumb? Perhaps, that is its nature as shown in many other instances.

A very important official of the mercantile sector said in a TV discussion not so long ago that he was quite confident that no senior person would have voted for the UNP government. Is it any wonder that the government was hounded out of office four years before its time?

I appeal to the Ministry of Finance, to remove this cruel injustice that the UNP foisted on a large section of the people, now close to the end of their lives.

URSULA WIJESURIYA, Galle

Nuraicholai - a wrong choice of site?

The feature article of Rt. Rev. F. Marcus Fernando, Bishop of Chilaw refers. The objections indicated by him are as follows:

1. The location of the power plant could adversely effect the shrine.

2. The livelihood of the poor fishermen of the area will be hampered.

3. Unloading of coal in the vicinity will not be possible during the monsoon periods.

4. The security factor.

My comments on his observations are indicated below:

1. Adverse effect on Shrine

The perception is that with the passage of time the shrine will be devoured by the Indian Ocean through sea erosion. This is a very puerile reason in that in this modern age. This type of threat could be averted by the construction of a dyke or a similar construction.

2. Livelihood of poor fishermen

The Reverend Bishop concedes that the fishermen are poor. If the power plant is not constructed at Nuraicholai the fishermen will continue to be poor. On the other hand, if they are relocated, they will be financially compensated and alternative accommodation provided on the sea coast.

Thus not only will they be able to continue with their traditional occupation but will also have better housing and a supplementary source of income by the interest earned after investing the money paid as compensation.

Furthermore there will be an alternative source of employment for their progeny at the coal power plant, if they so desire. Cognisance must also be taken of the fact that when a large project is inaugurated in an area there is a general uplift of the economy in its vicinity, due to a trickle down effect. Obviously the poor fishermen too will reap the benefits.

3. Unloading of coal during Monsoon period

This perceived problem, if in fact there is one, is best left to experts to decide on the most cost effective method of ensuring supply for uninterrupted power generation.

4. Security factor

The Defence Services and the Police are the best advisors on this subject.

A clergyman can certainly express his opinion but not by any stretch of imagination in the capacity of an expert.

When in other parts of the world nuclear reactors are secured by their forces, it is an insult to insinuate that our military (if given the appropriate equipment) will be incompetent to protect the power plant and its ancillaries.

The country is heading for a power crisis. Let us not 'dilly dally'. We must invest in the Coal Power Plant without any further delay.

With all reverence, I quote Matthew CH 8 V22 to his Lordship 'Let the dead bury their own dead' - there is a limit to puerile objections.

A. B. SOSA, Colombo 2

Special examination for medical graduates who qualified abroad

The examination for citizens of Sri Lanka who obtained a medical degree from a medical school or University outside the country, which is recognized by the Sri Lanka Medical Council, has drawn attention in various media. The Council wishes to express its views on this matter.

The main objective of this exam is to evaluate whether such a medical graduate has adequate knowledge and skill to commence his practise in this country, in the interest of public safety.

The exam is held under section 29 (1) (b) (ii) (cc) of the Medical Ordinance. It is conducted in two parts, Part I being a written exam with multiple choice question (MCQ) papers and Part II a Clinical/viva voce exam. The subjects tested are (1) General Medicine and Psychiatry (2) Surgery (3) Obstetrics and Gynaecology (4) Paediatrics and Community Medicine (5) Pathology and (6) Forensic Medicine. A candidate has to pass the MCQ paper in a subject to sit for the clinical/viva voce part in that subject. Three Council members and a non-member who is a Senior Health Department Consultant coordinate the exam. They are responsible to the Education Committee of the Council, which in turn is responsible to the Medical Council.

There is a Board of Examiners for each subject consisting of 6 to 8 persons who are Professors or Senior Lecturers in the Medical Faculties or Senior Health Department Consultants. They set the papers, and after the exam, correct the answer scripts. Members of the Medical Council are not members of the Boards of Examiners. The exam is conducted according to rules and guidelines similar to those at Medical Faculties and the Postgraduate Institute of Medicine.

Transparency and confidentiality are maintained in a similar manner. If a candidate feels that there may have been a mistake in marking his paper, he can appeal for a re-correction, which will be done by the Board of Examiners. There is no other evaluation of the exam. The MC written papers and Clinical/viva voce exams are conducted three times a year and the results are released within one month of each exam.

The Sri Lanka Medical Council does not conduct any training or preparatory classes for this exam, as it is not a function of the Council. There appears to be a wide discrepancy regarding medical knowledge among candidates from different medical schools as well as among candidates from the same school. The exam is conducted in English and possession of a basic knowledge in that language helps to pass the exam.

Some candidates have studied Medicine in languages other than English and it appears that this affects the results, but the Council has no alternative mechanism to test them. It is acknowledged that a working knowledge of English is required to practise this system of Medicine in the country.

The exam is conducted in a fair and just manner, although unsuccessful candidates and their parents sometimes resort to unfair criticism.

PROF. P. S. S. PANDITHARATNE, Registrar, Sri Lanka Medical Council Colombo 10

Withdrawing EPF benefits

It is time that the Ministry of Labour or high officials in the Labour Department (LD) look into the age old process followed by the LD when one applies to get his EPF benefits.

These officials forget that we are taking back our money which we have saved maybe for about thirty-five years.

They look for ways to delay or withhold the payment.

After handing over the withdrawal application, a member is asked to contact the office after six weeks to check the progress. Usually, one will find that his file is under another hundreds of files and nothing had happened.

If there is a minor mistake in your application, you have to find another income to sustain you for about six months because you are not going to get your EPF benefits for a long period.

When you visit the EPF office in Kollupitiya you will meet old people who are still visiting the office even after six months of submitting the application.

With all these new office processes with computers handling everything the LD should be able to pay these benefits within a week. By delaying each payment, they would be piling up more and more applications and situation is becoming worse.

If the EPF Division of the Central Bank can furnish a member's account details within a few minutes even by e-mail, why can't the LD pay this money fast? Do they want to maintain that old saying 'Government Departments are inefficient, lethargic......?'

Or are the employees of the relevant Divisions of the LD want to show the importance of them to these old men and women or are they penalizing these members for some grievances they are having?

Minister Athauda Seneviratne who has a long association with the workers of the country should solve this problem very fast.

DESHAPRIYA RAJAPAKSHA, Colombo 6

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