Good Governance Economics: 'Mobile Phone Users Cannot Say Cost Of Living Is Too High'

September 21, 2016

Mobile phone users cannot say that they are unable to bear the cost of living, State Finance Minister Lakshman Yapa Abeywardena said.

He made this observation at a meeting in Matara yesterday, in an attempt to justify the imposition of VAT on telecommunications services.

"A mobile phone is not a commodity. If someone can buy a mobile phone he cannot say that the cost of living is high" he claimed.

Co-Cabinet Spokesman Dr. Rajitha Senaratne also justified the imposition of VAT last week.

"Sri Lanka has a population of 20 million and 21 million mobile phones. So, the tax is not unjust" he said.

A journalist pointed out that if there were 21 million mobile phones in the country, it could be considered a commodity, and therefore the tax on mobile services is unjust. Senaratne chose to avoid the number games, saying that "no tax is fair."