BIZ

FTZ Union requests Govt. to collar bigtime tax evaders

Published

2 years ago

November 11, 2022

editor

The Free Trade Zones and General Services Employees’ Union (FTZ&GSEU) has made a call to take immediate action on companies that have become VAT and income tax defaulters, rather than increasing the indirect tax burden on the public.

In a letter to all MPs, the FTZ&GSEU says the following factors were revealed in a Parliament speech by MP Mahindananda Aluthgamage on Sep. 20.

Only 25,692 companies have paid taxes out of 100,005 business companies that have income tax files opened. Accordingly, 74,313 companies have defrauded in paying due taxes.
Out of the 60,721 enterprises registered for VAT only 185 have paid VAT charged from customers by September to the government. This means the remaining 60,536 enterprises have kept for themselves the VAT charged from customers.
Income tax has not been paid by a leading businessman who owns a popular chain of garment outlets and also by a businessman owning a popular supermarket chain.
Income tax is not paid by 75 MPs.

“Whatever the motive was for MP Aluthgamage to expose these defrauds, in a country where indirect tax total 83 percent, it is the general public who end up carrying this huge burden of tax defaults in billions of rupees by corrupt businessmen. People have been made to undergo all hardships due to these defaults with no government taking effective measures to recover defaulted tax money with surcharges from those who defraud. Instead of recovering defaulted tax money with penalties from corrupt defrauding businessmen, governments impose and increase indirect taxes on people who thus become unnecessarily punished,” the letter adds.

The FTZ&GSEU further urges the MPs to take the following measures in this regard :

Request the Minister of Finance to present a detailed report to Parliament including the names of businessmen who are related to tax frauds mentioned above, before the next budget is presented in parliament and also adopt resolutions in parliament to,
Immediately suspend the income tax imposed on personal incomes of one hundred thousand rupees (100,000) and above, until a final decision is taken by the NLAC on information provided by the ministry of finance on tax defrauds and
Remove the total VAT imposed on essential consumer goods and suspend the social security contribution levy of 2.5 percent in force with effect from the 01 st October 2022.

The complete letter of the FTZ&GSEU is as follows :

To-all-the-Hon.-Members-of-Parliament-08.11.2022 Download

BIZ

Adani denies cancellation of power purchase deal with SL

Published

2 days ago

January 24, 2025

editor

India’s Adani Group has denied the cancellation of its $440 million power purchase deal with Sri Lanka, terming the reports as “false and misleading”.
The media statement notes that “the Sri Lankan Cabinet’s decision of 2 Jan 2025 to reevaluate the tariff approved in May 2024 is part of a standard review process, particularly with a new government, to ensure that the terms align with their current priorities and energy policies.”

“Adani remains committed to investing $1 billion in Sri Lanka’s green energy sector, driving renewable energy and economic growth,” it adds.

The media statement comes after the AFP reported that the new Sri Lankan government has revoked a power purchase agreement with Indian conglomerate Adani Group following allegations of corruption.

The deal had initially approved to purchase electricity at US$0.0826 per kilowatt hour from the proposed Adani wind power plant, which is to be built in the Northern region of Sri Lanka.

Several activists had challenged the agreement, arguing that smaller renewable projects were selling electricity at two-thirds the price of Adani, the AFP had further reported.
In addition, the project is also facing separate environmental concerns.

While President Dissanayake’s cabinet has revoked the 20-year deal power purchase deal signed in May 2024, it has not cancelled the project and has appointed a committee to review the project, the AFP reported, citing an official document and an energy ministry official.

BIZ

Lanka Sathosa slashes prices of several essential goods

Published

4 days ago

January 22, 2025

editor

Lanka Sathosa has reduced the prices of several essential goods, effective from today (Jan. 22).

As per the instructions of the Ministry of Trade, Commerce, Food Security, the following price reductions are now in effect at all Lanka Sathosa outlets islandwide:

White sugar: Reduced by Rs. 2 (New price Rs. 240 per kg.)
Brown sugar: Reduced by Rs. 40 (New price Rs. 300 per kg.)
Imported potatoes: Reduced by Rs. 30 (New price Rs. 180 per kg.)
Red peas: Reduced by Rs. 30 (New price Rs. 765 per kg.)
Sprats: Reduced by Rs. 20 (New price Rs. 940 per kg.)
Dried chillies: Reduced by Rs. 15 (New price Rs. 830 per kg.)
Basmati rice: Reduced by Rs. 10 (New price Rs. 645 per kg.)
Imported big onions: Reduced by Rs. 10 (New price Rs. 230 per kg.)
Lentils: Reduced by Rs. 2 (New price Rs. 288 per kg.)
Local cashew nuts: Reduced by Rs. 100 (New price Rs. 995 per kg.)

BIZ

Ceylon Chamber seeks approval to import 200mn. coconuts

Published

4 days ago

January 22, 2025

editor

The Ceylon Chamber of Coconut Industries has urged the government for permission to import 200 million coconuts with the next few months.

President of the Ceylon Chamber of Coconut Industries Jayantha Samarakoon said that the major reason for the current coconut shortage is the spike in fertilizer prices.

Speaking at a media briefing held at the National Chamber of Commerce Auditorium yesterday (21), he mentioned that the coconut imports are essential at this time to counter a severe shortage that threatens both domestic supply and export revenue.

Samarakoon attributed the coconut shortfall to skyrocketing fertilizer prices, which have discouraged growers from adequately nourishing coconut crops. He warned that if coconut stocks needed for the coconut-based export industry are not imported immediately, Sri Lanka could lose approximately USD 1 billion in revenue.

He further highlighted that the country’s monthly coconut demand stands at 250 million nuts, of which 150 million are consumed domestically while 100 million are utilized by the industrial sector. However, production has failed to keep pace.

Sri Lanka’s annual coconut yield, which previously averaged 3 billion nuts, dropped to 2.68 billion nuts last year. The Coconut Research Institute has forecast a further decline this year, with production estimated to fall to between 2.4 and 2.6 billion nuts. The institute also predicts a shortfall of 200 million coconuts between January and April 2025, exacerbating the crisis.

In response, the Chamber has proposed importing alternative coconut products such as coconut milk, coconut kernel, dried coconut kernel, or peeled coconuts to bridge the deficit.

Additionally, Samarakoon noted that a steep increase in fertilizer costs—from Rs. 1,500 to Rs. 12,000 per 50 kg bag—has resulted in reducing the growers using fertilizer to less than 10%, further worsening the production slump.

The Chamber has requested that the government provide fertilizer at a subsidized price of Rs. 4,000 per bag and expressed optimism that the upcoming budget will address this issue.

The Chamber also urged the government to introduce subsidies for water supply and soil conservation, which are critical to sustaining coconut cultivation.

(adaderana.lk)

(Except for the headline, this story, originally published by adaderana.lk has not been edited by SLM staff)