Only a portion of income earned by companies involved in sugar scam recoverable

By Yohan Perera and Ajith Siriwardana  

It is possible to recover only a portion of the sugar scam from the six companies involved in it, The Commissioner General of Inland Revenue had informed the State Minister of Finance, as revealed in Parliament yesterday.  

State Minister Ranjith Siyambalapitiya told Parliament that only a portion of the amount which the six companies earned as a result of the sugar scam could be recovered from the said companies in the form of income tax.  

“The Inland Revenue Department Chief had informed me that there is no legal provisions for the government to recharge the import duty from the sugar importing companies. However it is possible to recover some of the revenue which the government has lost through income tax,” the State Minister said.  He revealed that the government has lost Rs 16 billion as a result of the sugar scam while 45 percent of this has gone to one company. He said this particular company had imported 125,207 metric tonnes and had earned a high income.  

“ I request committees such as COPE,COPA and finance committee to look into this matter and provide some advice to the government.