Mar 27, 2021

US $200 m spent to import sugar after tax reduction Featured

A staggering amount of  over 200 million dollars have been spent for importing sugar since October after the government reduced the tax to an unprecedented level of 25 cents.

The fact that such an amount was spent on sugar import has caused further chaos at a time the government is hell-bent on saving foreign reserves.

The facts are also being revealed amid allegations of malpractices involving the decision to reduce the tax on sugar.

According to sugar importers, 440,000 metric tons of sugar have been imported to the country between Oct. 14 to March 26.Economists say a sum of US $ 200 million has been spent for importing this amount of sugar.They point out that the government would have to suffer only a loss of $ 110 million if the government took measures to sell sugar at a subsidized price of Rs 85 per kilo through the CWE.

Economists also stressed that if the government imposed restrictions on the import of sugar, the country would be able to save $ 110 million.Sources say more than 120,000 metric tons of sugar have been imported to Sri Lanka between Feb. 20 to March  26 after the tax on sugar was reduced to 25 cents.

It is learnt that as a result of this move, the government has lost about Rs 6 billion of tax revenue.

Besides, 440,000 metric tons of sugar have been imported between Oct. 14 to March 26 after the tax on te import of sugar was lowered to 25 cents. The government incurred a loss of Rs 21 billion during that period. The finance ministry previously said the government has lost tax revenue of more than 15 billion over the import of 320,000 metric tons of sugar between Oct. 14 to Feb. 26.They said still sugar is still being imported to the country under the reduced tax.