The Committee on Ways and Means has advised the Inland Revenue Department to look into the country losing tax revenue due to sugar and wheat flour import restrictions and tax revisions.
At a meeting of the committee chaired by MP Patali Champika Ranawaka on Nov. 15, the IRD was also directed to initiate an investigation to look into how this lost tax revenue can be recovered.
Noting that an audit report had revealed that the slashing of the Special Commodity Duty on Sugar from Rs. 50 – Rs 0.25 had led to companies accumulating illegal profits of nearly Rs. 16 billion, the committee urged IRD officials to to an assessment with regard to these companies and collect the due taxes.
The committee chairman had also pointed out that the two main companies engaged in Wheat Flour importation had also accumulated large stocks as well as massive profits, amounting to billions of rupees.