Govt. should impose ‘excess profit tax’ over sugar scam: UNP

Tuesday, 16 March 2021 01:20 - - {{hitsCtrl.values.hits}}

Warns failing to act will weaken public confidence in Govt. economic policies

Ashu Marasinghe

The United National Party (UNP) yesterday called on the Government to impose an ‘excess profit tax’ to regain the lost revenue from the recent sugar scam.

Speaking to media at Sirikotha, former MP Professor Ashu Marasinghe, explained that the Government’s decision to reduce the import levy on sugar imports had resulted in the Treasury losing Rs. 15.9 billion in tax revenue.

“The UNP urges the Government to immediately rectify this loss and recover the funds by imposing an ‘excess profit tax’. With the introduction of this new tax, the consumers will not be burdened, as prices of goods will not be increased. The suppliers will also not be unduly taxed as this will be levied against the excess profits they have earned.”

The former MP added that with the financial year ending on the 31 March, it was essential that the Government immediately introduce this tax so as to ensure this large scale loss to the treasury does not go unresolved.

“Those involved in this sugar scam have close dealings with the current President and Government. If the Government is unwilling to recover the lost revenue from this company, it will clearly demonstrate to the public that they are protecting those who supported them, at the cost of the general public. The Government is facing a mounting debt crisis and a reduced revenue stream due to economic mismanagement; a loss of this magnitude will only further weaken confidence in the Government’s economic policies.”

Professor Marasinghe also urged the Government to immediately appoint an independent commission to inquire into Sathosa’s purchase and sale of sugar.

“According to the Finance Ministry, Sathosa purchased sugar following the tax reduction at prices varying between Rs. 127 and Rs. 92 per kg. However, they sold sugar at the Government enforced maximum retail price of Rs. 85 per kg. The losses incurred by Sathosa must be investigated.”