Govt. to probe into coconut oil importing companies evading Rs. 5.8 b taxes

Thursday, 6 February 2025 00:34 - - {{hitsCtrl.values.hits}}

SJB MP Marikkar in Parliament asks Govt. to explain policy on importing and taxing of refined and unrefined coconut oil
Accuses former President Wickremesinghe of requesting IRD for a tax exemption for a company
Emphasises over 4 m kilos of coconut oil had been imported under this Govt. also

Prime Minister Dr. Harini Amarasuriya

SJB MP S.M. Marrikar

The Government is to commence an investigation into companies which import coconut oil, evading taxes of over Rs. 5.8 billion.

This was expressed by Prime Minister Dr. Harini Amarasuriya in response to a question raised by Samagi Jana Balawegaya (SJB) MP S.M. Marikkar, who exposed a fraud allegedly taking place from 1 January 2024 until present when importing coconut oil to the country.

“From 1 January to 30 October 2024, over 38.8 million kilos of unrefined coconut oil have been imported to Sri Lanka, but we are clueless whether these stocks have been released to the market or not after refining. We have information that those companies have not yet paid taxes. Last November, 1.7 kilos, and in December, 1.48 kilos of unrefined coconut oil were imported,” he said, asking the Government to explain its policy on importing and taxing refined and unrefined coconut oil.

Stressing this fraud commenced during former President Ranil Wickremesinghe’s tenure, he explained how a company had requested Wickremesinghe to provide a tax exemption and the former President, as the former Finance Minister, had forwarded it to the Department of State Fiscal Policy (DSFP) and Inland Revenue Department (IRD) on 31 July 2024.

“The four coconut oil importing companies have to pay Rs. 5.8 billion as taxes. Will the Finance Ministry direct the IRD to recover this massive amount in taxes?” he asked at the parliamentary debate.

He further said that those companies continue to import coconut oil while still evading taxes and over 4 million kilos of coconut oil had also been imported under this Government.

Responding to queries raised by Marikkar, the Premier said that refined and unrefined coconut oil was allowed to be imported under the provisions of the Special Commodity Levy Act, No. 48 of 2007 and taxes were levied under this Act.

“Under the provisions of this Act, a special trade tax of Rs. 150 is levied for 1 kilo of refined coconut oil and Rs. 125 for unrefined coconut oil. Since these goods are defined under the special trade tax, no other taxes will be charged,” she explained, while reiterating the need to commence an investigation into the matter.