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The ripple effect of tax evasion: A risk to everyone

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People evade taxes for various reasons. One common factor is the desire to avoid financial burden, especially when tax rates are perceived as high or unfair.

Some individuals may also lack trust in how tax revenues are used by the government, leading them to believe that paying taxes is not beneficial. Others may feel that tax evasion is a victimless crime or that they can get away with it due to weak enforcement with in the system.

In some cases, complexity in the tax system and lack of awareness about tax laws may also contribute to unintentional non-compliance. Additionally, economic pressures or the desire for a higher standard of living can motivate individuals to evade taxes, viewing it as a quick solution to financial difficulties.

Nevertheless, if an individual or business considers evading taxes, they may not fully understand the extensive long-term impacts of their actions. While tax evasion might appear advantageous in the short term, it can ultimately jeopardize their own interests and negatively affect the overall welfare of society. Tax evasion represents a significant challenge with wide-ranging effects on society.

When individuals or businesses intentionally evade paying taxes, they not only deny the government essential funds needed for critical services such as education, healthcare and infrastructure, but they also create an uneven playing field for those who pay taxes.

This behaviour erodes the fairness of the tax system and imposes an unfair burden on compliant taxpayers. Furthermore, tax evasion can disrupt markets and stifle economic progress, ultimately affecting the well-being of society as a whole.

This article aims to highlight the widespread consequences of tax evasion, emphasising how it undermines public services, economic growth and social fairness, ultimately impacting every member of society.

The role of taxes in society
Taxation is a fundamental aspect of any functioning government, serving as the primary means for financing public services and infrastructure. Through taxes, governments fund essential programmes such as welfare services, knowledge aquisition, law enforcement, defense and social security which the services are crucial to the public welfare.

In addition to these core services, taxes support disaster relief efforts, road maintenance, scientific research and much more, contributing to the overall development of the nation. Without a consistent flow of tax revenue, the government would be unable to fulfill its responsibilities to the public, leading to gaps in services that are essential for daily life.

Paying taxes is not only a legal obligation but also a civic duty. It ensures that government can meet the demands of their population and invest in long-term societal growth.

For individuals and businesses, contributing taxes is an integral part of maintaining a stable and prosperous economy. In return, the government reinvests this revenue into vital sectors that directly affect the people’s quality of life. By fulfilling their tax obligations, citizens play an active role in shaping the future of their country and supporting the services that benefit everyone.

Repercussions of tax evasion
Tax evasion poses a significant threat to the smooth functioning of government services by depriving public institutions of the critical funds they rely on. As tax evasion increases, governments face budget deficits, forcing them to either cut essential services or raise taxes on law-abiding citizens, which creates an unfair burden.

When tax revenues decline, governments struggle to fund initiatives that drive economic growth, such as infrastructure development, technological advancement, research and innovation and the generation of new knowledge.

The lack of investment stifles job creation, limits business opportunities, hampers improvements in standard of living and undermines the economy’s overall competitiveness.

Consequently, economic growth slows, negatively impacting everyone from workers to entrepreneursm by reducing prosperity and limiting future potential.

Additionally, the frustration felt by honest taxpayers grows, fostering a sense of mistrust. This results in an environment where those who adhere to the law are unfairly penalised, while tax evaders continue to benefit.

This situation erodes social fairness and cohesion, ultimately harming society by depriving it of vital public goods and services that benefit everyone.

Additionally, tax evasion can have severe personal consequences, such as legal penalties, financial instability and a damaged reputation. It can also lead to increased stress, negatively impacting personal relationships and long-term financial security.

What steps can we take?
As tax evasion reverberates throughout the economy and society, its consequences extend far beyond the act itself. So, what can we do collectively to reduce the risk of tax evasion? Rather than waiting for policymakers to implement stricter measures or for tax authorities to conduct rigorous investigations and prosecutions, we can take individual responsibility by ensuring we fulfill our tax obligations.

This includes accurately reporting income and expenses, avoiding the creation of false invoices, declaring all assets and liabilities, refraining from hiding offshore income, and not manipulating transaction prices.

These actions are essential to maintaining compliance with tax regulations. By doing so, we not only contribute to the economic process but also experience a sense of moral satisfaction and self-fulfillment.

Paying taxes is our duty to society and instead of pointing fingers or blaming others, it’s time for us to act. Together, we can strengthen the economy and ensure a fairer and more prosperous society for all.

(Author- Dr. Nadee Dissanayake,Deputy Commissioner General Inland Revenue Department)

(dailynews.lk)

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Could AI text alerts help save snow leopards from extinction?

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Lovely is one of between 4,000 and 6,000 snow leopards on the planet

Snow leopards cannot growl. So when we step towards one of these fierce predators, she’s purring.

“Lovely,” as she’s called, was orphaned and rescued 12 years ago in Pakistan-administered Gilgit-Baltistan.

After years of relying on staff to feed her, she does not know how to hunt in the wild – and cannot be set free.

“If we release her, she would just go attack a farmer’s sheep and get killed,” Lovely’s caretaker, Tehzeeb Hussain, tells us.

Despite laws protecting them, between 221 to 450 snow leopards are killed each year, the World Wide Fund for Nature (WWF) says, which has contributed to a 20% decline in the global population over the past two decades.

More than half of these deaths were in retaliation for the loss of livestock.

Now, scientists estimate that just 4,000 to 6,000 snow leopards are left in the wild – with roughly 300 of these in Pakistan, the third-largest population in the world.

To try and reverse these worrying trends, the WWF – with the help of Pakistan’s Lahore University of Management Sciences (LUMS) – has developed cameras powered by artificial intelligence (AI).

Their aim is to detect a snow leopard’s presence and warn villagers via text message to move their livestock to safety.

The cameras operate using lithium batteries and solar panels

Tall, with a solar panel mounted on top, the cameras are positioned high among barren and rugged mountains at nearly 3,000m (9,843ft).

“Snow leopard territory,” says Asif Iqbal, a conservationist from WWF Pakistan. He walks us a few more steps and points to tracks on the ground: “These are pretty new.”

Asif hopes this means the camera has recorded more evidence that the AI software – which allows it to differentiate between humans, other animals and snow leopards – is working.

The WWF is currently testing 10 cameras, deployed across three villages in Gilgit-Baltistan. It has taken three years to train the AI model to detect these categories with impressive – if not perfect – accuracy.

Once we’re back down the mountain, Asif pulls up his computer and shows me a dashboard. There I am, in a series of GIFs. It correctly detects I’m a human. But as we scroll down the list, I come up again, and this time I’m listed as both a human and an animal. I’m wearing a thick white fleece, so I forgive the programme.

Then, Asif shows me the money shot. It’s a snow leopard, recorded a few nights prior, in night-vision. He pulls up another one from the week before. It’s a snow leopard raising its tail against a nearby rock. “It’s a mother leopard, looks like she’s marking her territory,” Asif says.

The cameras have been developed to detect a snow leopard’s presence and then warn villagers to move their livestock to safety

Setting up the cameras in rocky, high-altitude areas took a lot of trial and error. The WWF went through several types of batteries until it found one that could withstand the harsh winters. A specific paint was chosen to avoid reflecting light as animals pass by.

If the cellular service fails in the mountains, the device continues recording and capturing data locally. But the team has had to accept there are some problems they simply cannot solve.

While the camera lens is protected by a metallic box, they’ve had to replace solar panels damaged by landslides.

It is not just the technology that has caused problems. Getting the local community’s buy-in has also been a challenge. At first, some were suspicious and doubted whether the project could help them or the snow leopards.

“We noticed some of the wires had been cut,” Asif says. “People had thrown blankets over the cameras.”

The team also had to be mindful of the local culture and the emphasis on women’s privacy. Cameras had to be moved because women were walking by too often.

Some villages still have yet to sign consent and privacy forms, which means the technology cannot be rolled out in their area just yet. The WWF wants a binding promise that local farmers will not give poachers access to the footage.

Sitara says a snow leopard killed her sheep while they were grazing

Sitara lost all six of her sheep in January. She says she had taken them to graze on land above her home but that a snow leopard attacked them.

“It was three to four years of hard work raising those animals, and it all ended in one day,” she says.

The loss of her livelihood left her bedridden for several days. When asked if she is hopeful the AI cameras could help in the future, she replies: “My phone barely gets any service during the day, how can a text help?”

At a gathering of village elders, leaders of the Khyber village explain how attitudes have changed over the years, and that a growing proportion of their village understands the importance of snow leopards and their impact on the ecosystem.

According to the WWF, snow leopards hunt ibex and blue sheep, which stops these animals from overgrazing and helps to preserve grasslands so villagers can feed their livestock.

But not all are convinced. One local farmer questions the benefits of the animals.

“We used to have 40 to 50 sheep, now we’ve only got four or five, and the reason is the threat from snow leopards and from ibex eating the grass,” he says.

Climate change also has a part to play in why some feel threatened by snow leopards. Scientists say warming temperatures have led villagers to move their crops and livestock to higher areas in the mountains, encroaching on snow leopards’ own habitat, making livestock more of a target.

Whether the villagers are convinced by the conservation message or not, the WWF tells us legal penalties have served as a strong deterrent in recent years. Three men were jailed in 2020 after killing a snow leopard in Hoper valley, about a two-hour drive from Khyber. One of them had posted photos of himself with the dead animal on social media.

While those involved in the camera project are hopeful their AI devices can have an impact, they know they cannot be the sole solution.

In September, they are going to start trialling smells, sounds and lights at the camera sites to try to deter snow leopards from moving onto nearby villages, putting themselves and livestock in jeopardy.

Their work tracking these “ghosts of the mountains” is not over yet.

– Azadeh Moshiri, Usman Zahid and Kamil Khan Dayan

(BBC News)

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“China stands ready to work with all countries including Sri Lanka”

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China stands ready to work with all countries in the world including Sri Lanka, to firmly uphold multilateralism, oppose economic bullying and trade protectionism, jointly safeguard international fairness and justice, and strive to foster a stable global environment for development, Chinese ambassador to Sri Lanka – Mr. Qi Zhenhong says.

In an article he has written on the US tariffs, he says, “China and Sri Lanka are good friends, good brothers and good partners from history to present. Our cooperation has become a model of South-South cooperation. Under the new circumstances, China stands ready to work with all countries in the world including Sri Lanka, to firmly uphold multilateralism, oppose economic bullying and trade protectionism, jointly safeguard international fairness and justice, and strive to foster a stable global environment for development.”

“In this process, China will resolutely implement the important consensus reached between President Xi Jinping and President Anura Kumara Dissanayake, bring greater opportunities to Sri Lanka through China’s high-quality development, and work together to jointly build a China-Sri Lanka community with a shared future for greater benefits of the people of the two countries and the region,” he adds.

The complete article is as follows : 

Uphold Solidarity and Cooperation to Build a China-Sri Lanka Community with a Shared Future

Recently, the US government, disregarding unanimous opposition from the international community, announced its decision to impose so-called “reciprocal tariffs” on all trading partners including China and Sri Lanka. This move was followed by repeated policy reversals, creating significant chaos and uncertainty on a global scale. Moreover, this uncertainty continues to accumulate, potentially causing broader turmoil and even triggering a global economic recession. 

By recklessly imposing tariffs on other countries, the US defies the fundamental laws of economics and market principles, disregards the balanced outcomes achieved through multilateral trade negotiations, ignores the fact that the US has long benefited substantially from international trade, and weaponizes tariffs to exert maximum pressure for selfish interests. This is a typical act of unilateralism, protectionism and economic bullying. Such actions not only directly infringes upon the legitimate rights and interests of global trade partners, but also pose unpredictable and severe consequences for the US economy itself. Currently, the US stock market is plunging, Treasury bonds are being sold off, and inflationary pressures are mounting, living costs and financial strain on ordinary Americans are increasing. Voices of opposition within the US against the excessive use of tariffs are growing louder.

As a matter of fact, the US and other Western developed countries have been the architects and long-time leaders of the global free trade system established after World War II. People in Global South countries, including China and Sri Lanka, have only been able to earn meagre foreign exchange earnings by working really hard to provide high-quality, low-priced commodities to developed countries like the US. Meanwhile, the US, by occupying the high end of the industrial chain, has earned substantial profits by exporting services, high-tech products and equipment. What’s more, many products manufactured by developing countries like China and Sri Lanka and exported to developed countries are essentially products of Western companies. 

The US and its ruling class are the primary beneficiaries of economic globalization, while the Global South countries have long called for reform of the unjust international political and economic order. However, the US repeatedly claims to be harmed by trade deficits, ignoring the role of imported goods in reducing its living costs and diversifying its consumers’ choices, not to mention the dominant position the US holds in service trade. Today, the US is wielding tariffs as a weapon to intimidate other countries, attempting to force “manufacturing re-shoring” through measures that defy basic economics. This approach is a case of repaying kindness with enmity—it harms others while failing to solve the US’s own problems. This approach undermines the development rights of countries around the world, especially those in the Global South, and runs counter to the principles of globalization. Such actions are doomed to fail. This approach has caused widespread disappointment and unease across the globe and has been encountered with unanimous opposition from the international community.

Openness and cooperation are the prevailing trends of history, and mutual benefit is the shared aspiration of all. For the majority of countries committed to development and revitalization—including Sri Lanka—a free and open multilateral trading system is of vital importance. A secure and stable international environment is indispensable, and the more cooperative and reliable economic and trade partners there are, the better. Looking back at history, the evolution of globalization has always advanced through twists and turns amid turbulence. Since the formation of the modern world system, depressions and wars have occasionally erected high walls between countries and continents. But the common pursuit of cooperation and prosperity of humanity has always broken through these barriers and brought global integration to new heights. 

A major country should have the responsibilities of a major country. It must not pursue profit at the expense of principles, nor should it bully the weak with its strength. As the second largest economy, the second largest market for consumer goods, and a firm supporter of the multilateral trading system, China has always believed that cooperation is the only right path to addressing global challenges, and multilateralism is the inevitable choice for overcoming the difficulties the world faces. There are no winners in trade or tariff wars. Protectionism is a dead end. Solidarity and cooperation is the right way forward for humanity. China will continue to work with the international community to firmly oppose the US’s reckless imposition of tariffs. 

Moreover, China will continue to advance high-standard opening up, and implement high-standard policies for trade and investment liberalization and facilitation, share development opportunities with the world to achieve mutual benefits, win-win outcomes and shared prosperity, and promote a universally beneficial and inclusive economic globalization. Since 2017, the negative list for foreign investment has been shortened from 93 to 29 items nationwide, and all restrictions on access in the manufacturing sector have been removed. In 2024, 59,000 foreign-invested companies were newly established in China, up by 9.9 percent year-on-year. China’s total import and export of goods reached RMB 10.3 trillion in the first quarter this year, of which exports exceeded RMB 6 trillion with a relatively fast growth of 6.9 percent. China is the world’s market and a source of opportunities for every country. In a world full of uncertainties, China will continue to seek joining hands rather than throwing punches, removing barriers rather than erecting walls, and promoting connectivity rather than decoupling. We will further expand the trade network, be an even stronger magnet for investment, and provide stability and positive energy to the world economy through high-quality development and high-standard opening up.

China and Sri Lanka are good friends, good brothers and good partners from history to present. Our cooperation has become a model of South-South cooperation. Under the new circumstances, China stands ready to work with all countries in the world including Sri Lanka, to firmly uphold multilateralism, oppose economic bullying and trade protectionism, jointly safeguard international fairness and justice, and strive to foster a stable global environment for development. In this process, China will resolutely implement the important consensus reached between President Xi Jinping and President Anura Kumara Dissanayake, bring greater opportunities to Sri Lanka through China’s high-quality development, and work together to jointly build a China-Sri Lanka community with a shared future for greater benefits of the people of the two countries and the region.

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How “Left” or “Marxist-Leninist” is JVP as claimed in media?

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How would you identify the JVP, politically? The JVP is almost always labelled in media as “Left leaning” and at times as “Marxist-Leninist”. Since the two elections they won last year (2024), “Former Marxist” is how media often calls President Anura Kumara and the JVP now. This is more in English media and in foreign coverage.

Quite recently a media report said, the JVP led NPP does not anymore call for “nationalisation of private enterprises, does not oppose privatisation of State-Owned Enterprises, giving up on their earlier Marxist political stands on national economy” while another media report said, President Anura Kumara had assured the visiting IMF delegation, they would not deviate from the agreed IMF programme, thus leaving their “Left” politics aside.

Rohana Wijeweera the unknown initiator of the JVP had his affiliations with the CP of Ceylon then through his paternal politics, that gave him the opportunity for higher studies in the USSR. He was, it is said, forced to leave Soviet Russia for his Beijing fancied politics, during the Soviet-China conflict in early ‘60s. That perhaps was reason for Wijeweera to join with Shanmugathasan’s CP (Beijing wing) on his return to Sri Lanka and to work with its youth federation.

In 1965 he broke off from Shanmugathasan’s politics and went on his own in organising a clandestine armed organisation, that subsequently was named the JVP (People’s Liberation Front). During the initial phase when Wijeweera was compelled to have a political programme to recruit youth, the famous “05 classes” he formulated, included one that strongly argued against the “Left Movement in Sri Lanka” and a crude history of “socialist revolutions” with interpretations that supported Wijeweera’s “single day armed revolution”. The fourth class was developed against “Indian expansionism”.

Let me stress. Clandestine or not, a political decision that commits for a very primitive armed “revolution” to take State power in just one day, can be nowhere near Marxism-Leninism. Not even close to “Narodnism” a political movement in rural Russia that emerged in late 19th Century borrowing Marxist slogans now and then, and “stood for agrarian politics in mobilising the peasantry to oust the Russian Tsar in a popular peasant uprising”. Adding a strong anti-Indian expansionist political call to its own, Wijeweera left no space whatever for “Left” politics, leave alone “Marxist-Leninism”. Left politics and Marxism-Leninism can never be racist to any degree at any time.

Their hardline anti-India and anti-Tamil racist politics were more than evident during their 88-90 savage insurgency, when they went on a killing spree of ordinary Sinhala citizens for supporting and voting at the initial ’88 PC elections and for selling products imported from India. They interpreted “Tamil nationalism” as divisive politics that stand for a separate “Thamil Eelam”. Thus, justifying their opposition to the Tamil nationalist demand for “power sharing” even to date.

This JVP was brutally crushed before end 1990 by State Security Forces. Entire leadership including Wijeweera and Gamanayake were eliminated after they were brought under the custody of the Security Forces, leaving district activists leaderless, scattered and still underground not knowing what they could do.

Over the years in early 1990’s, they began regrouping as a democratic group, while State
intelligence agencies were scouting for underground activists. After President Premadasa met with his tragic death in 1993 May, there apparently was a change in how President Wijetunge’s government led by PM Ranil Wickramasinghe accepted the regrouping of JVP for democratic politics, despite the JVP remaining proscribed. Perhaps the political reading of the ruling party leadership with Wickramsinghe was, JVP terror would come to an end, if the majority is brought to open politics, instead of rounding them up one by one. Nandana Gunathilake the General Secretary of the new JVP that was regrouping then in early 90’s, said in a public discussion recently, they knew they had to enter democratic politics to come out of trapped undercover, as people were not prepared to accept them as “revolutionaries”.

They entered parliamentary politics in 1994 August in alliance with SLFP dissident Ariya Bulegoda’s Sri Lanka Progressive Front (SLPF). They contested few districts including Hambantota and Matara. First elected JVP MP was from the Hambantota district. Elected on the preferential vote, he was not their choice. The new JVP leadership thus had a very ugly, rough tussle for many weeks with the elected candidate in forcing him to resign forthwith and the next two on the list as well, to have Nihal Galappaththy to be sworn in as the JVP MP.

For the November presidential elections in 1994, though contesting from SLPF, Galappaththy was presented to the public as the JVP candidate. JVP offered to withdraw him in favour of PA candidate Kumaratunge, if she undertakes in writing to abolish the executive presidency within 06 months from elections. She did provide a written undertaking as requested, but never bothered to look at it after she was elected with over 60 percent votes. For over 30 years thereafter, every political party at every election promised to abolish the presidency, but has not. Now as leader of the first political party to demand abolition of the Executive Presidency, Anura Kumara Dissanayake (AKD) is sitting on that very chair, gradually glorifying the presidency in establishing his authority as Executive President.

It is quite clear now, politics of AKD is the decisive factor in this JVP/NPP government.
Evolving as its most attractive and effective platform speaker, AKD was also the political factor in the JVP leadership that reached out to the Sinhala urban middleclass in forming the NPP as a new democratic political platform.

He had the advantage of promoting colleagues like Vijitha Herath, Bimal Rathnayake, Vasantha Samarasinghe, Nalinda Jayatissa to the top leadership, who would be accepted within urban Sinhala middleclass circles. They are different to those like Somawansa, Weerawansa, Nandana and Tilvin from Kalutara district who were basically tied to lower social segments of the Southern Sinhala society, a fair distance away from the middleclass.

What is thus important is to know, it was not the NPP that diluted “Left” coinig in JVP rhetoric. Even during Somawansa’s leadership with AKD and his colleagues participating in decision making, the JVP never pushed for “Left” political positions as non-negotiable. Though they gave “Left” slogans loud voice in their May Day processions to impress workers, they never stood firm with “Left” slogans in parliamentary politics.

In 2001 September negotiating conditions for a “probationary” government with a desperate President Chandrika Kumaratunge, JVP’s first condition was halting discussions with the LTTE on power devolution and limiting the cabinet of ministers to 20 members. They were soft on ongoing IMF programme, proposing discussions with the IMF on “privatising State enterprises”, no different to where they stand on the Wickramasinghe agreed IMF programme. That “probationary” government never took shape with 15 MPs including 03 ministers of the Kumaratunge government crossing over to the opposition UNP.

Again, in 2004 April parliamentary elections, JVP joined President Kumaratunge’s UPFA on condition they would be given 04 ministries and 04 deputies including ministry of Agriculture, the portfolio held by AKD. The main condition once again remained the stalling of negotiations on devolution with LTTE. President Kumaratunge’s negotiations with LTTE for post-Tsunami relief, nevertheless led JVP to leave the government in June 2005.

A few months later, agreeing to Rajapaksa’s candidature at the November 2005 presidential elections, JVP signed a MoU with Mahinda Rajapaksa that said, “It is agreed to protect, defend and preserve the unitary nature of the Sri Lankan state under any solution to be presented, formed or formulated for the purpose of the resolution of the national question.”

All through their parliamentary political history since 1994, JVP has not been as firm on privatisation of State enterprises, and the IMF, as they have been against “devolution of power.” They have also stood firm and uncompromising on the “Unitary State” as no other Sinhala-Buddhist entity in the South. In fact, it was the JVP that went before the Supreme Court, appealing for the de-merger of the North-East Province. President AKD borrowing Rajapaksa’s post-war Sinhala-Buddhist phrase “This country has no minorities – all are Sri Lankans and equals”, leaves nothing “Left” nor “Marxist-Leninist” in JVP, and leaves no alternative for the NPP too, but to follow AKD, the “Pied Piper”.

– Kusal Perera
2025, April 18

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