Sugar tax style scam causes huge losses to Treasury

A section of govt. connived with milk food importers-FNO

The Federation of National Organizations (FNO) yesterday (12) alleged that an influential section of the government and milk food importers had connived to have import duty on milk powder abolished before they cleared already imported milk food stocks.

A spokesperson for FNO compared the racket to issuance of a special gazette in early Oct 2020 to reduce sugar import duty to 25 cents from Rs 50 that caused massive losses.

Head of the FNO Dr. Gunadasa Amarasekera, in a statement issued yesterday on behalf of the organisation, pointed out that the government had announced removal of import duty on milk food imports after 4,200 metric tonnes or 4.2 million kilos of milk power had arrived at the Colombo Port.

Pointing out that the stocks had been received about a month ago, the FNO alleged that interested parties, including a section of the government, had created an environment conducive for the duty waiver.

The FNO pointed out how the importers would benefit tremendously from that move.

The FNO reminded the incumbent administration that at its onset the country lost as much as Rs 600 bn due to removal and reduction of a range of taxes. (SF)