New Year aspirations for 2024 | Consumers concerned of being buried by taxes

People like Somalatha (left) are aspiring for a better life in the New Year. 
Pics by Kithsiri De Mel

Somalatha Pieris from Handapangoda is anticipating a better life in 2024. Gripped by the economic crisis and the soaring cost of living, she is worried over not being able to make ends meet in the New Year that has dawned. The government has already announced an increase in Value Added Tax (VAT) and for certain items the VAT would increase from 15% to 18% while some items would carry a full 18% VAT with effect from today (January 1). 

Already the price of a plain tea, milk tea, short eats, fried rice and kottu will increase by Rs. 5, Rs. 10, Rs. 10 and Rs. 25 respectively. Bus, school van and three-wheeler charges will also increase with effect from today. 2023 witnessed three electricity tariff revisions; a 66% increase in electricity tariffs implemented since February, a 14% increase in July and another 18% increase in October. These revisions were implemented in addition to a 70% increase in electricity tariff revisions during the previous year. The revisions were implemented in a backdrop where the electricity connections of over a 100,000 consumers were disconnected as they were unable to pay the arrears prior to the deadlines issued on red notices. But it was quite ironical to see how certain politicians paid overdue electricity bills of fellow politicians and pulled a huge drama on television while the common man had been trying to collect money to settle overdue utility bills!

Consumers would also experience a spike in telecommunication charges, in an era when everybody is trying to adjust to technology. The health sector has crippled to a point where patients had to bear the brunt of substandard medicines. It was after many patients experienced secondary complications that the batches of drugs were withdrawn or suspended. The substandard Prednisolone eye-drops, a substandard anaesthetic drug that claimed the lives of two patients and complications that emerged following the administration of Human Immunoglobulin, prescribed for severely immune-compromised patients revealed the gravity of the situation at hand. While investigations are ongoing patients continue to place their trust on the state health sector as they cannot afford medicines or treatment from private sector institutions.

The soaring cost of living will affect everybody including Pieris in the coming year. “I came to Nugegoda today to sell these sweetmeats for the New Year. I invested around Rs. 45,000 to prepare kavum, kokis and aasmi. There are two more packs which are yet to be opened. So far I have only made a sale of Rs. 7000 and by yesterday evening I want to finish off my sales. It is by chance that we would make a sale today. The weather conditions haven’t been in our favour during the past few days. From today all our basic purchases will be taxed. People are keener to purchase vegetables and other essentials and they would purchase a sweetmeat only if they have a little more money left. So how can we complaint about it? Everybody is struggling to make a living,” said Pieris.

Basic food items such as eggs would make a guest appearance on shelves from time to time. Some major shopping outlets have placed notices that some items would only be available if they are being purchased in bulk. Already there exists a dearth of keeri samba and people have forgotten it to a point where they have made up their minds to purchase another type of rice. During a certain regime, milk powder became a luxury. However one other argument is that it is alright for people to be taxed as long as the government is providing certain services to the people. The outdated free healthcare, free education concepts have scored more points during the election period. But with two elections in the offing and several candidates already campaigning to be in the limelight, one may also wonder whether the prices of essentials would be reduced by the leadership to garner more votes in the coming months.

For people like Somalatha, everything has become a luxury, but their only aspiration is to live a better life than what they had endured during the previous few years.