The discussion on the Government’s newly introduced tax regulations has triggered various concerns as to what new parties would have to pay taxes, how the opening of tax files would materialise, tax evasion related issues, and most importantly, how fair the new tax regulations are in the current economic context. Amidst these concerns, in a move that is likely to be welcomed by the public, the Government recently announced that politicians would not be exempted from taxes.

As per the Ministry of Finance, Economic Stabilisation and National Policies, plans are afoot to make it mandatory for all those entering politics and also the staff of Ministers to open tax files. In this regard, the State Minister of Finance, Ranjith Siyambalapitiya, explained that even those becoming Local Government representatives would also be subjected to this regulation. It is appreciable that the Government is aiming to subject those governing the country to the laws that apply to the public, and that is a good response to those raising concerns about financial transparency on the part of public representatives. In fact, it is an example that should have been set long ago, and it delivers a message that the country’s laws are fair. The same would be important even in the case of proving to international supporters of Sri Lanka that the country is ready to take the right path in ensuring accountability and transparency and also in the ongoing reform efforts which concern the country’s overall  financial management to a great degree.

Including politicians and Ministers’ staff who work closely with the former in the new tax system is critically important. The Government has asserted that the new tax policy is instrumental in rebuilding the collapsed national economy, and that there is absolutely no excuse as to why politicians should receive an exemption. However, given the manner in which laws were enforced in the past against politicians, who, in many cases, had the political and financial powers to get away with committing offences, paying attention to making this process a foolproof one is critically important. Therefore, a separate and transparent mechanism should be made available for politicians, taking also into account their role as public representatives and a group that is entitled to so many privileges maintained with public funds.

Most importantly, due to their role as public representatives, their tax records should be obtainable by the public.While one might argue that tax files or related details should be confidential, in the case of politicians' tax files, the public having access to those tax files is important and justifiable on several grounds. The foremost reason is almost all Parliamentarians have a negative track record with a large number of allegations, although many remain unconfirmed or under investigation, pertaining to embezzling public funds or having illegal means of income. While mere allegations do not necessarily make one a culprit, in a context where the said bad record has considerably impacted the public trust in public representatives, the overall governing system, democracy, and the management of public funds, having access to politicians' tax files to ensure that they remain under strict public scrutiny at least during their tenure is crucial. Corruption and economic mismanagement on the part of the political authority remains a major reason behind the prevailing economic crisis, and that itself justifies why the public should have an opportunity to monitor politicians' taxes.

However, that access should be granted depending on the reason why they are needed, in accordance with a proper set of guidelines and through a monitored mechanism. The obvious first steps would be allowing access to such details through the existing system that facilitates the obtaining of information under the Right to Information (RTI) Act or the Declaration of Assets and Liabilities Law, or via a new regulation. Either way, the public’s right to know information that should ideally be available publicly should be respected, and the public should not have to face the issues that they face when obtaining MPs’ assets and liabilities related information.

Regardless, MPs’ assets and liabilities and income related information being publicly available plays a massive role in restoring the public’s faith in the political authority.