ECONOMYNEXT – The Sri Lankan Parliamentary Committee on Public Finance (COPF) has issued a directive to the Ministry of Finance to impose an revenue tax on tremendous income of firms that might have doubtlessly abused an in a single day tax on sugar final week.
Sri Lanka has issued an order to extend the import tax on sugar from 25 cents to 50 rupees in a single day, with impact from November 4, with out delegating any form of pre-parliamentary sovereign prerogative to the accountable minister.
President Ranil Wickremesinghe’s authorities is going through intense criticism over the way in which it introduced the tax of fifty rupees per kilogram from 25 cents.
The tax launched at midnight has sparked controversy because it was completed for the advantage of some importers, who supply sugar from ports earlier than the tax.
“COPF has as we speak issued a directive directing the Sri Lankan Ministry of Finance to levy revenue tax on firms which have made tremendous income because of the ‘midnight gazette’,” COPF Chairman and Opposition Lawmaker Harsha de Silva mentioned on his X (Twitter) platform .
“We should compensate for the misplaced income and stop such incidents sooner or later,” he mentioned.
“Based mostly on customs knowledge, it was revealed that sure firms that usually import solely 2,000 tonnes of sugar monthly imported 10,000 tonnes of sugar simply earlier than the 200-fold tax hike, from 25 cents to Rs. 50.”
“This alleged exploitation should finish!”
“This type of manipulation can’t be ignored. Sure firms are mentioned to have exploited the system and made large income. I harassed the significance of eliminating ‘midnight gazettes’, in step with the IMF’s suggestions. Let’s work collectively to make sure a good and simply system for all.”
Sri Lanka underneath earlier President Gotabaya Rajapaksa minimize taxes in 2020 from 50 rupees to 25 cents in a single day and the mover helped an entrepreneur exploit the system.
President Wickremesinghe has reversed the 2020 tax minimize in the identical means this time round – by way of a midnight gazette, analysts say. (Colombo/November 7, 2023)
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