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COPA slams electric vehicle import scam

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The former Secretary to the Ministry of Labour and Foreign Employment has been found by the parliamentary watchdog committee COPA (Committee on Public Accounts) to be responsible for causing losses exceeding two billion rupees to the government due to the misuse of licenses for importing fully electric vehicles for Lankans working abroad, based on foreign remittances.

During the probe, COPA Chairman MP Aravinda Senarath stated that the former Secretary had carried out these irregular activities at the request of the former Minister, and that these actions seemed to be aimed at providing privileges to a select group of individuals.

It was found that malpractices occurred, ranging from the same importers holding over 600 electric vehicle licenses to issuing licenses to individuals who had not travelled abroad during the relevant period.

The Auditor General pointed out that the government lost Rs. 2.42 billion in tax revenue due to the increase in the luxury tax exemption limit for 921 electric vehicles imported up to September 30, 2024.

The committee also discussed special audit reports regarding a scheme implemented between May 1, 2022, and September 15, 2023, which granted permits for the importation of fully electric vehicles for Lankans employed abroad, based on foreign remittances.

The Auditor General further revealed that 1,077 vehicle permits were issued during this period, of which 77 permits were later cancelled. Two main institutions had acted as importers, providing facilities for 640 permit holders. The Auditor General emphasized that this indicated the creation of a business under the pretext of permit issuance.

Moreover, due to the increase in the luxury tax exemption threshold from Rs. 6 million to Rs. 12 million for 921 vehicles imported until September 30, 2024, the Auditor General stated that the government lost Rs. 2.42 billion in tax revenue.

It was also revealed that four individuals who had not travelled abroad during the relevant period were issued electric vehicle permits. Since the circular related to this scheme did not specify a minimum duration of overseas employment required for eligibility, individuals who had been abroad for as little as three days to three months, as well as those who travelled intermittently, were granted permits. It was also revealed that the Ministry of Labour and Foreign Employment had implemented this scheme prior to its revision.

COPA has recommended that an internal investigation be conducted and a report be submitted within a month, and that disciplinary action be taken against the officials involved in these irregularities.

Deputy Ministers Maj Gen (Rtd.) Aruna Jayasekera, Nalin Hewage, Sugath Thilakaratne, and MPs Kabir Hashim, Dr. M.L.A.M. Hizbullah, Chandana Sooriyaarachchi, Sagarika Athauda, Oshani Umanga, Dinindu Saman Hennayake, T.K. Jayasundara, Manjula Suraweera Arachchi, Ruwanthilaka Jayakody, Lal Premanath, and several government officials attended the meeting.



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Consumers bearing 22% tax burden despite 18% VAT claim: Dr. Harsha de Silva

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Dr. Harsha

Dr. Harsha points out masses are burdened with cascading taxes

While online casinos and betting roam free without being taxed

Opposition MP Dr. Harsha de Silva yesterday alleged that the actual tax burden on consumers was closer to 22 percent, despite the Government’s claim that Value Added Tax (VAT) stood at 18 percent, due to the cascading impact of the Social Security Contribution Levy (SSCL).

Speaking to the media, Dr. de Silva said the SSCL was imposed at several stages of the supply chain, including manufacturing, distribution, logistics and retail, with the additional costs ultimately being passed on to consumers.

He also criticised the Government over what he described as a delay in bringing online casinos and betting applications under the tax framework, claiming that such operators continued to earn substantial revenues without contributing taxes.

Dr. de Silva said he would closely monitor the June 30 deadline set by the Government for bringing these businesses into the tax net, and questioned the reasons behind the delay.

The Opposition MP further argued that the country’s existing tax policies had placed an unfair burden on consumers and small and medium-sized enterprises (SMEs), while allowing certain sectors to remain outside the tax system.

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Creditor not yet paid

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Apropos ‘Creditor receives USD 2.5 mn as Lankan public bears loss from theft of Treasury funds’, government sources told The Island that the payment hadn’t been made yet. Other sources, familiar with the issue at hand, said that regardless of the payments made to the tune of USD 2.5 mn to fake foreign accounts, Sri Lanka would have to settle the loans within a stipulated period or would be in default, though the due date could be altered through negotiations.

Sources explained that relevant parliamentary procedures had to be followed to make fresh payments.

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Police launch manhunt for suspect software engineer after finding body of girlfriend in abandoned car

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Police have launched a manhunt for a software engineer suspected of abandoning the body of his girlfriend inside a parked car near Teldeniya Hospital.

The deceased was identified as Shamya Darshani, 34, a physiotherapist attached to the Ampara District General Hospital.

Police said that the suspect, a resident of Gannoruwa, Kandy, had allegedly transported the woman’s body in a vehicle, left it parked near the hospital and fled. Police have appealed to the public for information leading to his arrest.

The investigation began after the victim’s brother, a resident of Kota Wewa, Thalawa, lodged a complaint with the Nuwara Eliya Police, on June 17, reporting that his sister, who had been staying at an apartment complex in Nuwara Eliya, had informed him that she had not eaten for several days.

Acting on the complaint, police searched the apartment but found it vacant. However, CCTV footage reportedly showed the suspect arriving at the apartment around 9.50 p.m., on June 16, and remaining there for about 40 minutes. The footage later showed him carrying the unconscious woman from the premises, at about 10.30 p.m. before driving away.

While Nuwara Eliya Police were investigating the disappearance, the Officer-in-Charge of Teldeniya Police received an anonymous telephone call stating that a woman’s body was inside a car, parked near the Teldeniya Hospital.

Police officers who inspected the locked vehicle found the body lying on the front passenger seat, covered with a black cloth. The vehicle was subsequently opened and the body recovered.

Further inquiries confirmed that the deceased was the woman reported missing from Nuwara Eliya.

Police investigations have revealed that the victim and the suspect had been in a relationship for about eight months. Investigators suspect that the woman had borrowed nearly Rs. 15 million from a bank and several individuals and handed the money to the suspect with plans to migrate to Canada together.

According to police, the victim had been under severe mental stress after creditors demanded repayment and the planned migration failed to materialise. She had reportedly moved into the Nuwara Eliya apartment on June 3.

Investigators said she had informed her brother that she had not eaten for three days and had also contacted a psychiatrist at the Ampara District General Hospital seeking assistance for mental distress. She had been advised to seek immediate treatment at the nearest hospital.

Her mobile phone had reportedly been switched off after 4 p.m. on June 16, prompting her brother to lodge a complaint with police.

Police also revealed that the vehicle used to transport the body belongs to another woman from the Ampara area who is also alleged to have been in a relationship with the suspect.

An open verdict was returned following the post-mortem examination, with authorities stating that the exact cause and manner of death have yet to be determined.

Further investigations are being conducted under the direct supervision of the Senior Superintendent of Police in charge of the Nuwara Eliya Division.

 by Norman Palihawadane and S.K. Samaranayake

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