• Committee on Ways and Means reveals traders profits range from Rs. 100 to Rs. 1000 per kilo, based on market prices 
• Decline in tax revenue attributed to mismatched Special Commodity Levy  since 2018
• Directives issued to Inland Revenue Department for swift action on Rs. 188 b tax arrears recovery
• Measures mandated to streamline import process and recoup taxes on undue profits
• Urgent interventions by urged to protect consumers and ensure transparency in pricing
• Suspension of licenses for importing electric vehicles abroad pending forensic audit

The Committee on Ways and Means revealed startling factors regarding the profit margins amassed by traders on imported essential food items. 

The committee chaired by MP Patali Champika Ranawaka, delved into discussions regarding the glaring disparities between market prices and import costs, shedding light on significant profits ranging from Rs. 100 to Rs. 1000 per kilogram.

Officials from key institutions including the Central Bank of Sri Lanka, Department of Trade and Investment Policies, Sri Lanka Customs, Import and Export Control Department, Department of Cen-sors and Statistics, and the Hector Kobbekaduwa Agra-rian Research and Training Institute were summoned to provide insights into the matter.

It was disclosed that since 2018, there has been a consistent decline in tax revenues generated from imported goods, attributed to a mismatch in the Special Commodity Levy (SCL) in accordance with the fluctuating value of the US dollar. 

Consequently, consumers have borne the brunt of inflated prices while traders have reaped substantial profits from the sale of these essential food items. Ranawaka instructed Sri Lanka Customs officials to furnish weekly reports pertaining to the importation of essential food items. 

He stressed the necessity for formal registration of importers under category 2,525 to facilitate the collection of value-added tax (VAT) and streamline the import process under category 7,000. 

Measures to recoup taxes on undue profits earned by importers from 2018 to 2023 were also mandated, with progress reports expected by month-end.

The Committee on Ways and Means also tackled the issue of tax arrears, issuing directives to the Inland Revenue Department for swift action, including asset acquisition and legal recourse to recover Rs. 188 billion in unpaid taxes. 

Additionally, measures were outlined to combat tax evasion, including the establishment of a digital platform for individuals earning over Rs. 100,000 per month.

The committee underscored the urgency for intervention by the Consumer Affairs Authority to safeguard consumers, particularly during festive seasons. 

It also recommended that the Ministry of Trade, Commerce, and Food Security device a program for direct importation and distribution of essential food items, bypassing intermediaries. In a bid to enhance transparency, the committee advocated for the dissemination of information regarding customs clearance, market prices, and maximum retail prices of essential food items through various digital platforms.

In addition, the meeting addressed concerns regarding irregularities in granting licenses for importing electric vehicles to Sri Lankans working abroad. Pending completion of a forensic audit by the Auditor General, the committee directed the suspension of gazettes extending such licenses.

State Ministers and Members of Parliament, including Lasantha Alagiyawanna, Sisira Jayakodi, Anuradha Jayaratne, and others, were present at the committee meeting. 

Marikkar criticises Govt. over neglected tax arrears