Concerns have been raised over the alleged leaking of tax-related decisions before it was announced by the government after many companies were found to have benefitted before the imposing of the recent sugar import levy.
Chairman of the Committee on Public Finance (COPF) MP Harsha de Silva pointed out that several companies had made super gains due to the tax changes.
MP de Silva said that the COPF issued a directive today instructing the Ministry of Finance to impose income tax on companies that had made super gains concerning the sugar import levy.
“Based on Customs data, it was revealed that certain companies which usually import only 2,000 MT of sugar monthly, imported 10,000 MT of sugar just before the tax increase of 200-fold, from 25 cents to Rs. 50. This alleged exploitation must end,” MP de Silva said taking to ‘X’.
The COPF Chairman further said that the authorities must compensate for lost revenue and prevent such incidents in the future.
“This kind of manipulation can’t be ignored. Specific companies allegedly exploited the system, reaping massive gains. I emphasized the importance of eliminating ‘midnight gazettes’ in line with @IMFNews recommendations. Let’s work together to ensure a fair & just system for all,” he added.
Meanwhile, Minister of Labour and Foreign Employment Manusha Nanayakkara has called for an inquiry into the possible leak of information about the sugar import levy before it was announced by the government.
Addressing the media, Minister Nanayakkara said it has been observed that several businessmen had received information on the tax change before it even being presented to the Cabinet of Ministers.
Stating that only Sri Lanka Customs officials were aware of the tax revision, the minister said, “The question we have to find the answer for is how that information reached those businessmen. I am sure that information does not leak from the Cabinet.”
“As soon as the government decides to impose a tax, some businessmen import those items. When the government decides to reduce tax, this same group hides those specific items. There is a group that always gains profit from changes in taxes. That is why the President set a maximum retail price for sugar. With that decision, it will not be possible to gain profits from this tax increase,” he added. (NewsWire)