Saturday Dec 21, 2024
Saturday Dec 21, 2024
Wednesday, 3 April 2019 00:10 - - {{hitsCtrl.values.hits}}
By Ashwin Hemmathagama, Our Lobby Correspondent
UNP lawmaker Mujibur Rahuman on Monday proposed a proper taxation system for the steel industry saying the absence of such a system is costing the State millions in tax rupees.
|
|
Mujibur Rahuman |
Moving an Adjournment Motion in Parliament on a ‘Proper taxation method for steel industry’, Rahuman said there is a high demand for steel bars and rods of different sizes made out of fresh steel or recycled steel by the construction industry, but local producers tend to mislead the tax authorities by amending the sales and manufacturing records.
“Steel manufacturers in the country are not taxed properly. Most of these factories are tax evading and are engaged in frauds. Annually, the tax evasion from the steel industry leads to a loss of Rs. 22 billion Value Added Tax (VAT). I propose a better system to keep a tab on the activities of these factories,” he said.
The MP noted that most of these steel factories are scattered in the Western Province and alleged that according to information he received, most of these factories defraud by evading the VAT and Nation Building Tax (NBT).
“We suspect some top brass in the Inland Revenue Department too are turning a blind eye,” the UNP MP said.
The MP said that 45,000MT of steel bars are used per month for concrete construction works in different part of the country. “Each ton of steel is sold subject to 15% VAT and 2% NBT. On certain occasions, the tax is evaded showing only about 30% of the sales. They cover up the actual sales and manufacturing data,” he alleged.
“There are two methods followed to produce these steel rods. The first method is to heat the scrap metals to produce recycled steel bars. The other system is to use billets to produce steel rods. Based on the extremely high profits earned by the market players, more and more scrap metal recycling plants are commissioned in the country,” he added.
