Committee on Ways and Means reveals traders’ profits range from Rs. 100 to Rs. 1000 per kilo from imported essential food items

A last week probe by the Committee on Ways and Means of Parliament on factors regarding the profit margins amassed by traders on imported essential food items found that there are glaring disparities between market prices and import costs while traders raking in profits ranging from Rs. 100 to Rs. 1,000 per kilo.

The committee chaired by MP Patali Champika Ranawaka has stated that consumers have been compelled to borne the brunt of inflated prices while traders have reaped substantial profits from the sale of these essential food items.

Officials from key institutions including the Central Bank of Sri Lanka, Department of Trade and Investment Policies, Sri Lanka Customs, Import and Export Control Department, Department of Census and Statistics, and the Hector Kobbekaduwa Agra-rian Research and Training Institute were questioned at this meeting, a parliament sources said.

Ranawaka instructed Sri Lanka Customs officials to furnish weekly reports pertaining to the importation of essential food items. It was disclosed that since 2018, there has been a consistent decline in tax revenues generated from imported goods, attributed to a mismatch in the Special Commodity Levy in accordance with the fluctuating value of the US dollar.

Ranawaka pointed out the necessity for formal registration of importers under category 2,525 to facilitate the collection of value-added tax (VAT) and streamline the import process under category 7,000.

Measures to recoup taxes on undue profits earned by importers from 2018 to 2023 were also mandated, with progress reports expected by month-end.

The Committee also tackled the issue of tax arrears, issuing directives to the Inland Revenue Department for swift action, including asset acquisition and legal recourse to recover Rs. 188 billion in unpaid taxes.

Additionally, measures were outlined to combat tax evasion, including the establishment of a digital platform for individuals earning over Rs. 100,000 per month.

In addition, the meeting addressed concerns regarding irregularities in granting licenses for importing electric vehicles to Sri Lankans working abroad. Pending completion of a forensic audit by the Auditor General, the committee directed the suspension of gazettes extending such licenses.

State Ministers and Members of Parliament, including Lasantha Alagiyawanna, Sisira Jayakodi, Anuradha Jayaratne, and others, were present at the committee meeting.