SJB demands forensic audit on loss incurred from reduction of duty on imported sugar

The Samagi Jana Balavegaya (SJB) has requested the Ministry of Finance to conduct a forensic audit on the loss incurred by the state due to reducing the import duty on sugar to Rs. 0.25 per kilo.

SJB MP Dr. Harsha de Silva urged a forensic audit to calculate the real loss since it was estimated that the state incurred a loss of Rs. 15.9 billion by what he called the strange exercise.

“The Ministry of Finance told the Parliamentary Committee on Public Accounts (COPA) this week that Rs. 15.9 billion in tax revenue has been lost”, he said.

Dr. De Silva said that the SJB had asked for a debate in Parliament on the matter.

Earlier this year, Chairman of the Committee on Public Finance Anura Priyadarshana Yapa instructed the Ministry of Finance officials to submit a report on the sugar tax revision.

In October 2020, the government reduced the import duty on a kilo of sugar from Rs. 50 to 25 cents stating that it wanted to reduce the retail price of sugar in the market.

However, sugar importers had stocked about 90,000 metric tons of sugar they had imported after paying Rs. 50 per kilo by way of import duty.

The government on 27 October increased the tax imposed on a kilo of sugar to Rs. 40. However, according to the Special commodity levy act, a levy increase come into force a month later.

Thus, the amended duty increase was not enforced between October 13 and November 13. During this period, one sugar importer was able to import 100,000 MT of sugar by paying only 25 cents as duty per kilo. Sathosa had also purchased sugar from the importer at over Rs. 125 a kilo. The Opposition alleges the importer made a significant profit at the expense of the state. (RK.)