AJITH SIRIWARDANA 
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Traders trying to get undue profit from VAT hike: Siyambalapitiya
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.
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