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Sri Lanka loses 0.5-pct of GDP in taxes from state worker car permits

Apr 27, 2013 (LBO) - Sri Lanka has lost 38.
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5 billion rupees in potential revenues from imported vehicles due to tax-slashed permits given to state functionaries, a government estimate showed.
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The so-called 'car permits' are now being sold in the secondary market and state functionaries are making tax-arbitrage profits. The practice which was carried on in the sly was made 'legal' this year.

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Giving tax free cars to elected rulers was begun by Sri Lanka's United National Party, a powerful faction in Sri Lanka's ruling elite.

The same party completely exempted state workers from tax, a peculiarly egregious statist privilege, which was ended by current President Mahinda Rajapaksa.



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But pay as you earn income tax of workers in state enterprises are still paid by the employer.

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Equal treatment of the ruling class and ordinary citizens in taxation was one of the fundamental liberties won by people with the end of feudalism in Europe.

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In France ending the tax free privileges of the aristocracy was one of the battle cries of the revolution.

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Its 'Declaration of the Rights of Man and of the Citizen (Déclaration des droits de l'homme et du citoyen)' called for

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