16 March 2021 12:06 am Views - 278
The United National Party (UNP) yesterday urged the Government to impose an Excess Profit Tax to regain the lost revenue from the recent sugar scam.
Former M.P. Professor Ashu Marasinghe, told a press conference that the Government’s decision to reduce the import levy on sugar imports had resulted in the Treasury losing Rs. 15.9 billion in tax revenue.
“The Government immediately should rectify this loss and recover the funds by imposing an Excess Profit Tax. With the introduction of this new tax, the consumers will not be burdened as prices of goods will not be increased. The suppliers will also not be unduly taxed as this will be levied against the excess profits they have earned,” the former MP said.
“Those involved in this sugar scam have close dealings with the current President and the Government. If the Government is unwilling to recover the lost revenue from this company, it will clearly demonstrate to the public that they are protecting those who supported them at the cost of the general public. The Government is facing a mounting debt crisis and a reduced revenue stream due to the economic mismanagement. A loss of this magnitude will only further weaken confidence in the Government’s economic policies,” he said.
Professor Marasinghe also urged the Government to immediately appoint an independent commission to inquire into Sathosa’s purchase and sale of sugar.
“According to the Finance Ministry, Sathosa purchased sugar, following the tax reduction, at prices varying between Rs. 127/- and Rs. 92/- per kg. However, they sold sugar at the Government enforced maximum retail price of Rs. 85/- per kg. The losses incurred by Sathosa must be investigated,” he also said.