Chairman of the Committee on Ways and Means and MP Patali Champika Ranawaka said in Parliament yesterday that Sri Lanka Customs, Inland Revenue Department and Excise Department are collectively owed a sum of Rs. 1,066 billion in taxes and duties to the government.
The MP mentioned this while presenting the second report of the Committee on Ways and Means to Parliament.
He also said that the increase in VAT on January 1, 2024, was done with the aim of collecting Rs. 600 billion for the government, and the amount of tax revenue not collected by these institutions in the last five years is around Rs. 656 billion.
He said that the number of tax defaulters above Rs.1,000 million is 92, while there are 104 defaulters between Rs. 500 million and Rs. 1,000 million and 57 defaulters between Rs. 300 million and Rs. 400 million. He also mentioned that there are 630 defaulters between Rs. 50 million and Rs. 100 million and 3,108 defaulters who have failed to pay taxes between Rs.10 million to Rs. 50 million.
He further stated that it is not justified to levy VAT on consumer items including milk powder, sugar, essential goods and fuel without collecting the relevant tax income from 4,479 tax defaulters.
Ranawaka said a kilo of big onions, which was imported to Sri Lanka at Rs. 92 per kilo in 2023, was later sold for Rs. 365 in the Orugodawatta yard and the price per kilo has increased to Rs. 700 when they reach the customers.
A kilo of potatoes cost Rs. 110 when they were imported to Sri Lnaka, but a kilo was sold for Rs. 840 at the market. MP Ranawaka said that the income of the few businessmen who imported those goods is approximately Rs. Rs.80,000 million and tax has not even been imposed on them. Meanwhile, a list of such imported goods was also presented to Parliament and tabled by him.
After the Committee on Ways and Means revealed about the defaulting liquor companies, the Excise Department’s income increased by Rs. 1,000 million in September 2023 alone, after collecting them, Ranawaka said.
He also mentioned that although information has been given about the illicit liquor production site in Dompe, only18 employees who worked there have been remanded, but no action has been taken against the owners of that company.
Ranawaka said even countries like Bangladesh are currently running about 10 digital banks and it is clear how to collect tax revenue through online banking transactions and it is proposed to set up an electronic platform in Sri Lanka as well so that the government will be able to collect tax from lakhs of tax evaders.
Irangika Range