A/HRC/44/50/Add.1 by representatives of the NGO Secretariat that, in such cases, a dialogue is established with the NGO in question in order to resolve security concerns leading to refusal of registration, including through the removal of members. Such a solution, however, raises concerns about the right to freedom of association of members who have not passed the security clearance process, especially because reasons for failure are not given and there is no appeals process. 62. For those NGOs that are registered in a country other than Sri Lanka, or those receiving funding from abroad, the Ministry of Foreign Affairs must also provide its approval. 63. He heard concerns from civil society organizations, especially in the north and east of the country, that informal refusals of associations at the district and divisional levels are commonplace for groups working on politically sensitive issues, such as LGBTQI+ rights, disappearances, land rights and transitional justice. These refusals typically come in verbal form, without any documentation, reasons or avenue for appeal. Reports state that local officials may also refuse to accept registration forms from such organizations, or refuse to provide registration materials in the first place. Oversight and approval of activities by district or divisional secretaries can also create difficulties for organizations working on corruption or governance, for example. 64. In 2018, a bill to replace the Voluntary Social Service Organizations Act, known as the NGO bill, was introduced with little to no consultation with civil society. The bill drew widespread criticism from civil society owing to the presence of a number of restrictive provisions that were not in line with international human rights norms and standards, including the mandatory registration of organizations and a wide number of bases for the punitive dissolution of organizations. The bill also provided new powers to the NGO Secretariat, including the ability to freely seize any organizational document, to enter organization offices without notice in order to conduct monitoring, and to launch investigations into organization activities without judicial oversight. 65. Following complaints from over 130 civil society organizations regarding the content of the bill and the lack of a consultative process in its drafting, the Minister of National Integration, Official Languages, Social Progress and Hindu Affairs withdrew the bill, opting instead to permit a group of civil society organizations to create and propose a draft instead, taking into account the various considerations and concerns of all parties. The Special Rapporteur welcomes this decision, especially with regard to the cooperative and consultative nature of the undertaking, and the promotion of the role of civil society in democratic processes. However, he notes that this plan of action should have been taken from the beginning, during the initial drafting phases of the bill. He also notes some concerns from civil society that the initial restrictive draft of the bill could be revived, and strongly recommends that the Government allow the civil society draft to advance as proposed. 66. NGOs are also required to pay tax under article 102 of the Inland Revenue Act No. 10 of 2006, which states that 3 per cent of any money received by an NGO should be treated as profit, and should be accordingly taxed at a rate of 30 per cent (amounting to an effective tax of approximately 1 per cent on all funding received). On 22 July 2011, however, a new regulation was passed, freeing NGOs of tax liability if the Commissioner General of Inland Revenue determines that they are engaged in humanitarian activities. While this new regulation is a step in the right direction, he considers that any tax paid by NGOs is unwarranted, given the not-for-profit nature of the organizations and the meagre amount that any such tax actually provides to the Government, which could instead be diverted directly towards beneficiaries. B. Trade unions 67. While Sri Lanka has a long history of strong trade unions, the opening up of the country to economic liberalization in the late 1970s led to the weakening of trade unions over the past decades. As a result, workers, especially in the informal sector, have found it increasingly difficult to assert their labour rights. The Special Rapporteur received many reports that politically aligned trade unions often represented the interests of political 11