Mar 16, 2021

Impose Excess Profit Tax to recover Sugar scam revenue loss Featured

The United National Party is urging the Government to impose an Excess Profit Tax to regain the lost revenue from the recent sugar scam.

former M.P. Prof. Ashu Marasinghe said the government’s decision to reduce the import levy on the sugar imports had resulted in the Treasury losing Rs. 15.9 billion in tax revenue.

“The UNP urges the Government to immediately rectify this loss and recover the funds by imposing an Excess Profit Tax. With the introduction of this new tax, the consumers will not be burdened as prices of goods will not be increased. The suppliers will also not be unduly taxed as this will be levied against the excess profits they have earned.”

Marasinghe said with the financial year ending on the 31st of March, it was essential that the Government immediately introduces this tax to ensure this largescale loss to the Government treasury would not go unsolved.

“Those involved in this sugar scam have close dealings with the current President and Government. If the Government is unwilling to recover the lost revenue from this company, it will clearly demonstrate to the public that they are protecting those who supported them at the cost of the general public. "

He also urged the Government to immediately appoint an independent commission to inquire into Sathosa’s purchase and sale of sugar. “According to the Finance Ministry, Sathosa purchased sugar, following the tax reduction, at prices varying between Rs. 127/- and Rs. 92/- per kg. However, they sold sugar at the Government enforced maximum retail p