Traders trying to get undue profit from VAT hike: Siyambalapitiya

2 January 2024 07:19 am Views - 1466

Colombo, Jan. 2 (Daily Mirror)- Sri Lanka had seen a drastic increase in imports to the country during the last two weeks aiming to gain undue advantage of the VAT  increase which came into effect from January 1, State Minister of  Finance Ranjith Siyambalapitiya said yesterday. 

Speaking to Daily Mirror, he said some people were trying to fish in troubled waters with the VAT increase where they had imported large amounts of goods than the requirement of the country, aiming to gain undue profits. 
  
He said imports had gone up by 50 to 60 per cent during the  last two weeks, adding that the number of containers brought to the  country on a daily basis had gone up by about 700.   

“The maximum number of containers reaching the Sri Lankan  ports daily is 1,000 and during the last two weeks, it has gone up to 1,700. This is an unusual and unexpected increase. This increase is not  to cater to the demand of the festive season because the imports for the  festive season was done in October and November. These increased  imports are solely to gain advantage of the VAT increase,’ he said.   
The Minister said some items were imposed 18 per cent VAT  while VAT on some others was increased from 15 per cent to 18 per cent and added that the items which first came under VAT had been mostly  imported during 
the last two weeks.   

“Building materials such as tiles, and solar panels are among  the items that had been increased in large amounts. Solar panels were  VAT-free earlier, and 18 per cent VAT is imposed on solar panels after  January 1st. The importers are trying to gain the advantage,” he said.     

When asked whether there was any mechanism to prevent the  importers from gaining undue advantage from goods imported before the VAT  increase came into effect, he said there was no such mechanism and said  the government will take steps to inform the people of the goods  imported beyond the requirement of the country.   

“I have informed the customs officials to provide a list of  goods imported during the last two weeks and provide the list of  requirements of the country so that people can know the extra amount of  items imported. These imports have not done to benefit the people but to  gain undue profits,’ he said.   

He said there was misunderstanding and miscommunication on the  imposition of VAT and added that people will be well-informed of the  new VAT imposition during this week.