The tax concessions granted for
international gambling tycoon James Packer by the Ministry of Finance
are even better than the tax concessions offered for the Sri Lankan
gaming mogul, the Secretary to Ministry of Transport Dhammika Perera,
reports say.
A personal grudge between
the Secretary of Finance Ministry Dr. P. B Jayasundara and Dhammika
Perera is heard to have caused the situation. Dhammika had launched a
huge media campaign to remove Jayasundara from his respective post and
gain his position.
However, according to
the word spreading among the field if James Packer arrives in Sri Lanka
Dhammika Perera will fall into status of a ‘Lilliput’.
In
the cold war between James Packer and Dhammika Perera the Ministry of
Finance is presumed to be favoring Packer. This was revealed in a debate
at the parliament yesterday (04).
Janatha
Vimukthi Peramuna (JVP) parliamentary group leader Anura Kumara
Dissanayake raised the issue in Parliament having circulated a letter
sent by Finance Ministry Director General K.M.M. Siriwardene to the
Chairman of the Board of Investment (BoI) which contains information on
tax concessions proposed to be offered to James Packer’s Australian
company, Crown Ltd.
According to JVP,
the government has granted ‘unlimited tax concessions’ for a company
from which tax of 40% of its profits must be obtained.
Pointing
out that the Casino company has been relieved from the income tax for
13 years from the starting date, the MP says that the charged revenue
from the company after the above time limit is the lessor amount of
either 6% or 50% of the hotel industry levy.
Investment
Promotion Minister Lakshman Yapa Abeywardane responding said this would
be an investment of US$350 million aimed at generating 2,600 direct
employment opportunities and numerous other indirect employment
opportunities. The minister said there would be a star grade resort with
a minimum of 400 rooms.
“It will have
facilities for retail shopping, entertainment. There will be fine dining
restaurants and meeting and convention facilities,” he said and added
that the BoI had been entrusted and empowered to attract investments.
“The
government’s target is 2.5 million tourist arrivals by 2016. We are
targeting a foreign direct investment of US$ 2 billion. We have followed
the legal procedure in giving tax concessions for projects meant to
achieve these targets,” the minister said.
He stated that casino businesses have not been identified as strategic development projects in the country.
He
also rejected the JVP allegation that the government has allowed the
Australian gambling tycoon to establish a ‘small government’ in Sri
Lanka by granting him special tax concessions.
However, Dissanayake
stated the ‘government is on its knees’ in front of the gambling tycoon
by granting him ‘unlimited tax concessions’.
Crown
Ltd is one of the biggest entertainment and holiday resort businesses
in Australia and they have established business locations in Melbourne,
Perth, Macau and London.
Minister of investment promotion
Lakshman Yapa Abeywardhana says that the Famous Australian Businessman
James Packer has not been given any Tax reliefs to start a Casino
project in Sri Lanka.
Minister made this remark yesterday answering a statement made by JVP MP Anura Kumara Dissanayaka upon standing order 23/2.
He said that the Casino industry has been identified as a strategic development project in Sri Lanka.
Minister further said that the BOI is giving tax reliefs in two ways.
i. under IRC law
ii . under strategic development projects Act
Thus the minister said that the above project was approved under the second category.
Minister also said that Govt did not grant any land to Mr.Packer for the project., but a Sri Lankan company.
And he said that No reccomendations have been made by the Govt to give any releifs .
