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CoPF urges tax on companies earning super gains due to ‘Midnight Gazette’

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The Committee on Public Finance (CoPF) issued a directive to Ministry of Finance officials, instructing them to impose income tax on companies that exploited the ‘midnight gazette’ to make significant profits, which CoPF refers to as ‘super gains,’ in order to compensate for lost revenue. 

The Committee also tasked officials with developing and implementing mechanisms to collect these taxes or providing detailed explanations if they are unable to do so, along with proposing remedial actions to prevent such incidents in the future.

The seriousness of the situation became evident when CoPF obtained essential data related to sugar imports for the past three months from the Department of Customs. CoPF questioned Ministry of Finance officials about the suspicious timing of this tax increase and the surge in sugar imports by certain companies just before the tax hike.

In response, Ministry of Finance officials stated that the tax increase was part of the fiscal-based revenue consolidation program linked to an IMF initiative. Furthermore, they highlighted that the sudden increase in sugar imports was a seasonal occurrence. In light of these claims, the Committee insisted on a comprehensive comparative analysis of previous years to verify these assertions.

The Committee sounded the alarm about specific companies importing unusually large quantities of sugar without concrete evidence supporting the necessity for such massive imports. For example, a company that typically imported 2,000 metric tons of sugar monthly inexplicably imported 10,000 metric tons in October, just before the tax increase, reaping substantial gains as the tax jumped 200-fold from 25 cents to 50 rupees.

Chairman Dr. Harsha de Silva stressed the importance of ending the use of ‘midnight gazettes’ related to special commodity levies. These practices provide the Minister of Finance with unchecked authority to change tax rates or grant tax exemptions to specific companies. This concern aligns with the recommendations made by the IMF in their Governance Diagnostic Report, urging Sri Lanka to eliminate ‘midnight gazettes’ due to their potential for fostering corruption.

State Minister Dr.Suren Raghavan as well as Members of Parliament M. A. Sumanthiran, Patali Champika Ranawaka, Nimal Lanza and Isuru Dodangoda, were present at the Committee meeting held.

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Tenders called for e-NIC project

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The Ministry of Digital Economy Affairs in Sri Lanka has said that Tenders have been called from Indian companies to develop Sri Lanka’s new digital National Identity Card (e-NIC).

Deputy Minister – Eranga Weeraratne stated that a 04 month period will be given for this process.

The Deputy Minister added that the new digital NIC is expected to be issued by mid-2026.

In January, Weeraratne had clarified that the government has decided to cover half of this cost through assistance from India to meet the financial burden.

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Public consultation on renewable energy sector kicks off today

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The Public Utilities Commission of Sri Lanka (PUCSL) announced that a public consultation will be held today (July 02) to identify challenges faced by renewable energy developers in Sri Lanka.

The Commission stated that oral submissions from stakeholders will be gathered from 8.00 am –  4.00pm at the Bandaranaike Memorial International Conference Hall (BMICH).

The public consultation is being held under the powers granted to the Commission by Section 17 of the Sri Lanka Public Utilities Commission Act, No. 35 of 2002.

Meanwhile, President of the Solar E P C Association (SEPCA) – Dr. Shyam Pathiraja has said that many stakeholders are expected to present their views on the crisis in the renewable energy sector.

On a related note, National People’s Power (NPP) MP – Ravindra Bandara claimed that the current government has not imposed any restrictions on renewable energy production.

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Court order issued against ‘Eh Yaye’ song

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The Commercial High Court has issued an interim injunction order, preventing popular artistes Romaine Willis and Mass Ramli Miskin (DJ Mass) from performing, reproducing and distributing the song ‘Eh Yaye’.

Colombo Commercial High Court Judge Priyantha Fernando issued the order after the Plaint filed under the Intellectual Property Act by popular singer Corrine Almeida.

The case also alleges that the musical composition and the lyrics of the song ‘Eh Yaye’ were substantially similar to the song ‘Api Natamu’.

Naming Willis and DJ Mass as defendants,  the plaintiff Corrine Almeida had also stated that she is the owner of the copyright and economic rights to the musical composition and lyrics of her song titled “Api Natamu”.

The plaintiff instituted action in terms of the Intellectual Property Act, No. 36 of 2003 alleging that the musical composition and the lyrics of ‘Eh Yaye’ were substantially similar to the ‘Api Natamu’ song.

(Source : Dailymirror.lk)

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