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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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Sri Lanka clinches second Hong Kong Cricket Sixes title after 17 years

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Sri Lanka, led by Lahiru Madushanka, clinched their second Hong Kong Cricket Sixes title, defeating Pakistan by three wickets with an over to spare at the Mission Road ground. This victory marks Sri Lanka’s first title win since 2007.

Pakistan, five-time champions, were restricted to 72 in 5.2 overs, with Dhananjaya Lakshan and Tharindu Ratnayake taking two wickets each. 

Pakistan opener Muhammad Akhlaq top-scored with 48 off 20 balls. 

Chasing 74, Sri Lankan opener Sadun Weerakkody smashed 34 off 13 balls, supported by Madushanka (19) and Ratnayake, who hit the winning six to remain unbeaten on 16.

In the semi-final, Sri Lanka edged past Bangladesh by three wickets. Ratnayake’s outstanding figures of 4/33 secured him Player of the Match, while Weerakkody’s quick-fire 50 retired hurt helped chase down 104 with a ball to spare.

Ratnayake finished as the tournament’s highest wicket-taker, earning him Player of the Series, while Lakshan’s final spell of 2/6 awarded him Player of the Final. South Africa and Oman won the Plate and Bowl Championships, respectively.

Chief Scores

Semi-final: Sri Lanka beat Bangladesh by 3 wickets
Bangladesh 103/5 in 6 overs; Sri Lanka 104/4 in 5.5 overs
Player of the Match: Tharindu Ratnayake

Final: Sri Lanka beat Pakistan by 3 wickets
Pakistan 72/6 in 5.2 overs; Sri Lanka 76/3 in 5 overs
Player of the Final: Dhananjaya Lakshan

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Suspect with 22 outstanding warrants arrested in Kandana

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A 42-year-old suspect with 22 outstanding arrest warrants has been apprehended in Kandewatta, Kandana. 

Police report that the individual, a resident of Madurankuliya, was wanted in connection with multiple crimes, including theft, with warrants issued by courts in Puttalam and Negombo.

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No withdrawal of security at religious places – MoD

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The Ministry of Defence states that the reports claiming the removal of security provided by the Tri-Forces and the Civil Defence Force at religious places in the country are untrue.

This was communicated by the media spokesman of the Ministry of Defence during a special press conference held this afternoon (03).

Speaking during the press conference, the media spokesman of Sri Lanka Army Major General Rasika Kumara stated that the government has not reached any decision to reduce the number of security personnel deployed at the religious places as of yet.

Furthermore, he assured that removing of tri-forces personnel from religious places is carried out only if it is confirmed that the number of security personnel required for a concerned location is less than the deployed amount, during security analysis conducted on a regular basis by the Army Headquarters.

(AdaDerana)
(This story, originally published by AdaDerana has not been edited by SLM staff)

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