COPF slams Finance Ministry, IRD for failure to collect taxes from major corporations

19 January 2024 12:01 am Views - 110

• Points out certain large corporations unfairly benefit from the reduced tax rate at the expense of  consumers
• Asserts the need to hold the wrongdoers accountable before imposing additional financial burden on the public

By Ajith Siriwardana

The Committee on Public Finance (COPF) slammed the Ministry of Finance and the Inland Revenue Department for failure to collect foregone taxes from major corporations connected to the sugar scam as outlined in the forensic report by the Auditor General.

The Committee chaired by Dr. Harsha de Silva inquired  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, expressed disappointment over the lack of action taken by relevant authorities despite a 99.5 percent reduction in the Special Commodity Levy on sugar imports, as stipulated in the Gazette 2197/12 dated October 13, 2020.

The Committee emphasised that no accountability measures have been implemented, allowing certain large corporations to unfairly benefit from the reduced tax rate at the expense of consumers.
Furthermore, the Committee was also concerned 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 Finance Ministry’s move to collect Rs. 30 billion from the average Sri Lankan while allowing implicated corporations to evade responsibility was strongly criticised.

The Committee emphasised the need to hold the wrongdoers accountable instead of burdening the public.