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Speaker Chamal Rajapaksa presided yesterday when Parliament met at 1 pm. After the presentation of papers and oral questions Parliament took up the second reading of Secretary to the Treasury (Nomination of Representative) Bill, Gaming (Special Previsions) Bill, default taxes (Special Provisions) Bill and the Public Enterprises Reform Commission of Sri Lanka (Repeal) Bill.

Finance and Planing Deputy Minister Sarath Amunugama: When we consider this Secretary to the Treasury (Nominations of Representative) Bill, we mainly concentrate to send representatives of the Treasury Secretary to various institutions except making his presence in person compulsory at the Monetary Board and at the Finance Commission. Actually this was the traditions practiced so far but our attempt is to regularize it as the Treasury Secretary has many other duties to attend.

Default Taxes (Special Provision) Bill is the other one we consider today as we notice when reorganizing the Inland Revenue Department that there are large number of dead files.

Because of many reasons including the death or emigration of taxpayers there are files that cannot be closed. Hence we hope to appoint another Deputy Commissioner General under the Island Revenue Commissioner General to handle the files of the default taxes.

The Government also hope to appoint a committee with members of retired Supreme Court Judges, Appeal Court Judges and High Court Judges to attend to these matters of default tax files that cannot due be closed due to the death of taxpayers, emigration of the taxpayers etc.

The responds of those committees should be gazetted within 30 days of their issuance.

The Government has decided to repeal the PERC. Under the Public Enterprises Reform Commission of Sri Lanka (Repeal) Bill the Government attempts to direct the staff and the matters under the PERC to the Finance Ministry and the National Development Ministry.

The Gaming (Special Provision) Bill is attempting to regularize the casinos. Earter we can remember a person commenced casinos at three main hotels in Colombo. Casinos started after 1977. Hence the casino activities should be regularized to develop the tourism industry. We should have a special area for those purposes.

A company in Singapore is planning to construct a massive hotel in Galle Face area. Now the tourism industry is booming and the arrival of tourists have increased by 100 percent. Our target is to increase the number of touristvisiting Sri Lanka to one million a year.

The Government intends by those four acts to regularize those corresponding areas to develop the country.

Deputy Speaker Priyankara Jayaratne takes the Chair

Joseph Micheal Perera (UNP): This is an important Bill that is being taken up today. We are distributed a paper consisting amendments to the Gaming Bill. This is not the Special Provisions Bill mentioned in the Order Paper. I request a clarification as to which paper is moved by Deputy Minister Sarath Amunugama today.

Water Supply and Drainage Minister Dinesh Gunawardena: The amendments related to the Bill presented in the House today have been tabled.

Joseph Micheal Perera continues: According to the amendments, Gaming (special provisions) Bill is to be renamed as a Casino Related Bill. Here the broad area of Gaming has been limited to casino.

But we ask whether casino is not a game? The establishment of casinos has already started. It is to make legal provisions to them that this Bill is presented today. In order to make the illegal legal, this Bill is presented. This is a money oriented initiative at the edge of development to attract tourists.

I ask whether the Government is ready to legalize prostitution in the country.

Prostitute institutes are seen in the country, as casinos. Applying the same logic followed to legalize casinos will the Government make facilities for prostitution?

This Bill not only includes casinos according to the description in it. The Government should discuss with the Religious leaders regarding this Bill.

It also facilitates obtaining a licence for them.

Sajin Vass Gunawardena (UPFA): These institutes are already provided licences from municipal councils. They are not illegal according to the law.

Joseph Micheal Perera continues: We ask whether this Bill complies with religious ideologies in the country.

Rehabilitation and Prison Reforms Minister D W Gunasekere: I would like to pay my attention to the Default Taxes (Especial Provisions) Bill which is related to the Inland Revenue Department. This is presented as mechanism to collect default taxes. It also facilitates a new methodology to Government institutions.

It is seen that only about 37 percent to 49 percent has handed over income tax reports. The Department has to estimate the income tax for others. On the other hand, we see that default income tax has been increasing day by day.

It was 3.3 percent in 2007, but this has increased to 5.7 percent now. This is a negative trend. An amendment to tax administration is needed. If not the default taxes will rise while the payments of the tax will decrease.

The amount of default tax is about Rs 134 billion. A mechanism to recover these taxes from legal means should be tried. Otherwise those should be written off since it is useless to carry them forward.

Sunil Handunnetti (DNA): I would like to pay attention to the Gaming Bill that is presented today. The book consists of ‘Mahinda Chinthana’ but what is being implemented is the ‘Chicago Ideology’. But people did not give their vote on behalf of the new policy that the Government follows.

Following the logic of the Government, it can facilitate the provisions to the underworld which is not legal at present. It can be given separate areas to be operated.

The person who will be entitled to provide licences to casinos will be the luckiest person. He will become the ‘Casino King’. I wonder who would be entrusted for this. He can easily win the next election, since its casino owners who run the election campaign.

The casino business which is limited to Colombo at the moment will spread all over the country by this Bill.

Economic Development Deputy Minister Lakshman Yapa Abeywardena: What was discussed mostly at this House is the social issues of the Gaming Act. This is not a new Bill. This was provisioned in the Bill presented in 1988. If an earnest interest was their to prohibit them, the Opposition had power to do it in the past.

What the Opposition is trying to do is to build a myth that the Government is trying to legalize gaming in the country. It is for the first time, that a fine of Rs 5 billion is introduced, if found to have established a casino without following the proper rules and regulations.

It was reported that a casino was there in front of Mahanama College too. The casinos had been operating in Colombo for a long time. But no attempt was taken to close it.

Today country’s tourism is rapidly improving. For the first time in the history we aim about 750,000 tourists at the end of December this year. All the hotel rooms in Colombo area are booked this November.

We also present the Secretary to the Treasury (Nomination of Representative) Bill today. From this we facilitate him to engage in his duties more efficiently.

The Default Tax Bill is also an important move in the country. This will make the collection of income taxes more efficiently. This will be a relief for Government institutions. There are some files in which the owner are dead. These should be regulated. Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair.

Tissa Attanayake (UNP): I like to talk of the Gaming (Special Provisions) Bill. The Government has amended its title to the Casino Regularizing Act. This is the same Bill moved earlier and came under protest earlier. The Government says that this is for the development of the tourism industry. But this is a kind of Gambling Bill.

Education Deputy Minister T B Ekanayake: Today we see special concentration is paid on Gaming (Special Provisions) Bill.

The Government has paid its attention to bring all the areas such as smoking, gambling could be done in a particular area to develop the tourism industry. There are eight casino clubs in Kollupitiya. Some of them are located near schools and religious places.

The UNP did not talk of them. The jackpot and other gambling machines were introduced by the UNP. Jackpot were spread all over the country even at remote villages. There was one located near the Matara temple. The UNP did not talk of them. After January 2012 gambling centres cannot be established in villages, near schools and temples.

All will be united to a particular area to develop the tourism industry.

Vasudeva Nanayakkara (UPFA): Today anybody can commence casino centres. The Government does not prevent them. Any group can commence casinos.

It is a foolish argument to say the Government introduced this Act for a particular company to commence casino clubs. Although the Act is introduced or not the particular company commenced their business here. Hence that is a baseless argument.

Vasudewa Nanayakkara (UPFA): The Government has lost a tax revenue of Rs. 14 billion which have been defaulted.

Nearly Rs 7.2 billion has to to be collected as revenue from penalties. Tax payers have filed many court cases to avoid paying taxes.

The Government incurrs huge losses due to tax defaulters. Today ordinary people pay their taxes. It is the big companies; that evade the payments. If any private company or institute go bankrupt we can grant them tax holidays.

We have to streamline this system of granting tax relief for suitable people who actually need it. Today the Government is able to collect only 50 percent of taxes and the balance is defaulted. We must take steps to formulate a proper tax collection system.

Akila Viraj Kariyawasam (UNP): The Government says these regulations were brought to develop the tourism sector. Are you going to allow setting up casino centers close to religious places and sacred areas where most tourists visit.

We know only few tourists visit these places. Hence how is this Bill capable of developing the tourism sector? It is clear that the Government wants to collect money by imposing taxes from these institutes.

This Act does not specify what sort of institutions are allowed to be set up here. This is the problem. It is true that gaming would give more revenue to the country, but there are many social impacts which will badly affect the country.

Resettlement Deputy Minister M Chandrasena: It was the UNP which legislated casinos. Today we do not know what sort of activities take place inside these centres. That is why we want to regulate them.

We brought this Bill to control illegal activities taking place in these areas.

Casinos located close to schools and religious places will be removed.

The Government has taken steps to control the nacotic mafia. Today we have been able to establish law and order in the country.

We introduced laws to stop smoking in public places while controlling the underworld activities .

Dayasiri Jayasekara (UNP): Gaming has been regulated under the Mahinda Chinthana.

I would like to ask the Government, whether it will take action to remove casino centres situated close to Mahanama Vidyalaya and Visakha Vidyalaya, Colombo.

The Government has a majority of two thirds in Parliament, and it misuses its powers. It is engaged in destroying moral values.

Technology and Research Deputy Minister Lalith Dissanayake: What we are going to do from this Gaming Bill is to bring all casinos to one particular place. This will make easy to regulate them properly.

Today the Government is administrating the banks in a proper manner. We have found money to buy the Shell Gas company and many important institutes in the country to the Government. We said in 2006 that we hope to amend the Casino Bill. It is done as said today. We have kept our promises and we know that the people in the country are with us.

Social Services Minister Felix Perera: I would like to draw my attention to the Default Tax Bill. This is a good move. There is about Rs 192 billion as default tax. This bill facilities to write off them, if there is no mechanism to recover them.

Today the Government has been able to buy shell gas. Nobody talks about those and all talk only about casinos.

Casino means “cashing no out.” That is hardly any money to take out and all money is to be retained in the club. About 60 percent of the money is taken by the clubs. You are aware the number of clubs in the country today.

If we need to develop the tourist industry we have to make arrangements to suit tourists. When we take the apparel industry, it is apparent that they change the clothes to suit seasons. They produce winter clothes during winter. We have to think in a new way to pursue development.

Economic Development Deputy Minister Ranjith Siyambalapitiya: I would like to pay my attention to Secretary to the Treasury (Nomination of Representative) Bill. This is an important initiative. We know the great deal of responsibility and duties entrusted to him. Therefore it is important to appoint a representative for him.

When we consider the Default Tax Bill, we see that this is a very positive initiative. Default tax of the country is increasing day by day. From this tax, what we hope in the first place is to recover this default tax. We also try to increase the income of Government institutions. I think this act is important for a country heading towards a rapid development to reach its targets.

More debate took place regarding the Gaming Bill. But it is under the UNP regime in 1988 that gaming was legalized initially.

Tax on casinos were increased 25 times then the earlier amount by our Government. Again the taxes were reduced under the then UNP regime. We again raised these amounts under our regime. We needed to discourage those who engaged in casinos and gaming. We need to detach people from those activities. Even from this Bill we aim to regulate these institutes.

Irrigation and Water Resources Management Minister Nimal Siripala de Silva: There is a long history in the practice of casinos. It was in China that it was first found and then it moved to Greece. Then it spread to Europe and America.

Speaker Chamal Rajapaksa takes the chair

MP Dayasiri admitted that they are aligned with the US and France. But he is reluctant the practice followed in those countries to be allowed here.

No religious leader nor a State leader can eradicate the gaming completely from a country. Even in the countries where there is a strict religious control there are people engage in them under cover. That is why the President has wanted to bring all these casinos into one place.

Oil refining capacity to be doubled
The daily oil refining capacity in crude oil barrels will be doubled at the conclusion of the Sapugaskanda oil refinery expansion project, said Petroleum Industries Minister Susil Premajayantha at Parliament yesterday.

He said that the project is expected to be concluded with four and half years after launching the project. He noted that the estimated project cost is US$ 2008.6 million including contingency of US$ 300.1 million.

“According to the MOU signed between the Iran and Sri Lankan Governments 70 percent of the project cost will be provided by Iran as a soft loan facility and the balance 30 percent to be borne by Sri Lankan Government,” he added.

He was responding to a question raised by UPFA MP Dr Sudarshani Fernandopulle.

PERC repeal Bill passed
The Bill moved to repeal the Public Enterprises Reform Commission (PERC) was passed Parliament yesterday. Finance and Planning Deputy Minister Sarath Amunugama yesterday commencing the second reading of the Public Enterprises Reform Commission of Sri Lanka (Repeal) Bill stated that the liabilities and assets of the PERC will be rested on the Finance Ministry and the National Development Ministry after PERC in repealed.

He also stated the officers of the PERC also be attached to other Governmental institutions accordingly.

President wants illegal casinos closed
President Mahinda Rajapaksa has instruct to close all illegal casino clubs, said Interregional Resources Management Minister and Leader of the House Nimal Siripala De Silva at Parliament yesterday.

The special attention of the President has been drawn as the Finance Minister to the casino club at DR Wijewardene Mawatha Colombo.

Minister Nimal Siripala further said that the President had instructed if it has been set up illegally, stern steps to be taken against all the officers involved in that racket. Several Opposition members including Joseph Micheal Perera yesterday spoke of this casino club at the debate of the Gaming (Special provisions) Bill at the Parliament yesterday.

The minister making the reply speech stated that the President has thanked the Opposition members for divulging matters in this respect.

Three Bills passed
Secretary to the Treasury (Nomination of Representative) Bill, Casino Business Regulation Bill and Default Taxes Bill moved by Finance Deputy Minister Sarath Amunugama were passed in Parliament yesterday with amendments.

Being asked for a division by UNP MP John Amaratunga for the Casino Business Regulation Bill the vote was taken by calling out names. The Bill was passed with a majority of 81 votes. 114 voted in favour of the Bill whereas 33 voted against. UNP and DNA voted against and TNA was absent at the time of the vote.

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