Trade Union Collective alleges policy changes threaten vital Govt. revenue collection

•  Customs, Inland Revenue, and Excise Trade Union Collective voices concern over undermining vital role played by these departments in Govt. revenue collection
•  Asserts proposals for revenue boost amid economic crisis ignored by higher Govt. authorities
•  Reveals IRD achieved record collection of Rs. 1,229 b as of 19 October compared to Rs. 653 b in same period 2022
•  Says vacant post of IRD Commissioner General hinders policy implementation
•  Customs Department collects Rs. 715 b revenue despite import restrictions on over 1,000 items; surpasses 2022 first nine months figure of Rs. 695 b 
•  Excise Department’s revenue target revised multiple times without systematic approach
•  Despite challenges, Excise Department collects Rs. 137.1 b as of 15 October, compared to Rs. 134.6 b in same period in 2022
•  Union sees circumstances as a conspiracy to diminish significance of State institutions

The Customs, Inland Revenue and Excise Trade Union Collective voiced concerns, asserting that ad-hoc policy shifts and questionable methodologies used in policy revisions, pose a threat to the crucial role played by these departments in Government revenue collection. 

Issuing a statement, unions argue that these efforts undermine the Government’s ability to fund essential services such as free education and healthcare. 

Representatives from the union, which oversees the Customs, Inland Revenue, and Excise Departments, contend that despite being State-run entities operating following Government policy, certain factions are disseminating baseless claims to wipe out these institutions. 

They further highlighted that proposals put forth by the three revenue-collecting organisations to enhance revenue and efficiency during the economic crisis, have been disregarded by higher authorities within the Government, signifying a lack of concern for public interests. 

The Inland Revenue Department’s outstanding achievement in collecting a record-breaking Rs. 1,229 billion as of 19 October compared to Rs. 653 billion in the same period last year, was cited as evidence of the departments’ dedication to their crucial role. 

Despite the challenging economic landscape, the Government has yet to address internal issues within the revenue-collecting organisations, opting instead to convey concerns to the international community. 

They alleged that the Commissioner General position of the Inland Revenue Department has been vacant since 27 August 2023, and has hampered the full implementation of policies required to reach Government targets by the end of the year.

Despite import restrictions on over 1,000 items as of mid-October 2023, union representatives said the Customs Department outperformed the Rs. 695 billion collected in the first nine months of 2022, by collecting Rs. 715 billion and was confident the department would make significant collections by year’s end. 

“The original income targets for the Excise Department undergo numerous alterations during the year, due to a lack of a structured methodology. Additionally, there have been significant revenue losses as a result of increased alcohol prices. The problem has been made worse by businesses’ misuse of stickers introduced to prevent smuggling foreign liquor to the country and to stop selling adulterated liquor to the customers and further increase its revenue,” they disclosed. 

Despite these difficulties, they said the Excise Department was still able to collect Rs. 137.1 billion (excluding court fines) as of 15 October 2023, up from Rs. 134.6 billion during the same period in 2022. 

They observe these circumstances as a conspiracy to erode the significance of these State institutions and demoralise the three departments. 

However, the Union representatives reiterate their commitment to contributing to economic prosperity and emphasise the need to broaden their responsibilities to overcome difficulties, to ensure access to services for the public like free education and healthcare.