Kodituwakku wants BOC to withhold payments until MPs pay State revenue on tax-free vehicles

By Shanika Sriyananda

Public interest litigation activist Nagananda Kodituwakku has urged the Bank of Ceylon to withhold his annual tax payment to Inland Revenue Department (IRD) until the Government takes immediate measures to recover taxes due to the State from import of duty-free luxary by MPs. 

Writing a letter to the Commissioner General of Inland Revenue, Kodituwakku said that while average people were burdened with unbearable taxes, Parliamentarians including the Cabinet Ministers were violating the law for their private benefit, with some intentionally denying revenue for the State.

According to Kodituwakku, 70 parliamentarians, including some Cabinet Ministers and the MPs of the Opposition, have already imported duty-free luxury vehicles (Toyota Land Cruisers and Hummers), so far.

Lawyer Kodituwakku said that he had complained to the Commission to Investigate Allegations of Bribery or Corruptions (CIABOC) on 26 August about this massive fraud in which the Government is losing Rs. 7 b in tax revenue from importing duty-free luxury vehicles. He said that parliamentarians are openly selling their tax-free car permits to car sales dealers but he had not received a response from CIABOC, so far.

“This financial crime is a criminal offence that falls under Section 70 of the Bribery Act. The Director General of CIABOC absolutely failed to take any action to initiate an independent investigation on this complaint,” he told the Daily FT.

Kodituwakku, the former Head of the Revenue Task Force of the Customs, said it was unfortunate that the Government had absolutely failed to act against this to put a halt to end this massive fraud and abuse of duty-free car permits for MPs.

“Therefore, this situation has forced me to withhold my income tax payment bill for 2015/2016, which amounts to Rs. 264,186 to make those top officials in the legislature and the executive understand the seriousness of these financial crimes,” he said.

He said that the Government would understand the importance of taking this step purely in the public interest and that is in line with every citizen’s right to equality and equal protection before the law (Article 12(1) of the Constitution).

However, he urged the public to withhold paying their income tax to the IRD until the State takes action to recover money owed by fraudulent MPs.