Finance Ministry, IRD taken to task for failing to collect due taxes from major corporations

18 January 2024 03:05 pm Views - 1570

Parliament, Jan. 18 (Daily Mirror)- The Committee on Public Finance has expressed its deep displeasure with the Ministry of Finance and the Inland Revenue Department's failure to collect foregone taxes from major corporations implicated in the sugar scam, as outlined in the forensic report by the Auditor General. 

The Committee chaired by Dr. Harsha de Silva inquired about the extent of tax collection from the implicated companies and directed the Inland Revenue Department to submit a comprehensive report within one week, the Communications Department of Parliament said.

The Committee, during a recent meeting, underscored its disappointment with the lack of action taken by the relevant authorities despite a 99.5% reduction in the Special Commodity Levy on sugar imports, as stipulated in the Gazette 2197/12 dated October 13, 2020. 

The Committee emphasized that no accountability measures have been implemented, allowing certain large corporations to unfairly benefit from the reduced tax rate at the expense of the consumers. 

Further addressing the issue, the Committee highlighted its concern over the proposed reversal of the tax policy, which aims to increase the Special Commodity Levy on sugar from Rs. 0.25/Kg back to Rs. 50/Kg. 

The intention of the Ministry of Finance to collect Rs. 30 billion from the average Sri Lankan while allowing implicated corporations to evade responsibility was strongly criticized. 

The Committee emphasized the need to hold the wrongdoers accountable before imposing additional financial burdens on the public.