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Corrupt elements use Parliament, Finance Ministry to evade taxes

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Economic Oversight Committee Chief makes shocking allegation

Complicity of official owning Las Vegas house exposed

by Shamindra Ferdinando

Chairman of the Sectoral Oversight Committee on National Economic and Physical Plans Mahindananda Aluthgamage, MP, yesterday (01), said influential corrupt elements within the state revenue collection apparatus had with the help of the Finance Ministry brought in amendments to relevant laws to stifle the revenue collection process. Their actions had taken a heavy toll on the state coffers.

The government had created a system that allowed four appeals against Inland Revenue Department tax estimates, MP Aluthgamage explained, alleging that interested parties abused the parliamentary process.

The former Minister said so in response to the queries raised by The Island about his recent declaration at the Presidential Media Centre (PMC) that a special unit was required to monitor Inland Revenue, Customs and Excise Departments.

Asked whether he had sought to highlight the failure on the part of parliamentary watchdog committees, the COPE (Committee on Public Enterprises), the COPF (Committee on Public Finance) and the COPA (Committee on Public Accounts), relevant ministerial consultative committees as well as the Auditor General to carry out their duties and functions properly, Aluthgamage said the fact that as much as Rs. 904 bn had not been collected as taxes over the past 15 years proved that the existing systems were flawed.

MP Aluthgamage said: “In fact, the government, at the expense of the national economy created a system for the benefit of tax dodgers. Parliament is responsible for this situation. Four appeals are not allowed in any part of the world. But the Finance Ministry and Parliament created systems that can be manipulated because the corrupt elements receive the backing of the powers that be.”

Responding to another question, MP Aluthgamage said those who had been tasked with revenue collection seemed to have been hand in glove with tax dodgers.

Aluthgamage said his committee had recently requested President Ranil Wickremesinghe, who also holds the Finance portfolio, to reduce the number of tax appeals from four to two.

MP Aluthgamage said that he had realised the urgent need for a fresh and thorough inquiry into state finance following the declaration of bankruptcy in May 2022 and the ouster of President Gotabaya Rajapaksa two months later.

The former Minister said that he wouldn’t hesitate to admit that corrupt systems remained in place regardless of the change of government in July last year. “A few months ago, a person known to me was asked to pay Rs 100 mn as tax. He got in touch with a senior revenue official, paid him Rs 10 mn and got the matter settled. When I brought this to the notice of the relevant department head, the official concerned simply said that particular officer often did so.

“Obviously regardless of the change of government and the fact that the country is begging for IMF assistance, corruption is rampant,” MP Aluthgamage said, noting that though the country was bankrupt and experienced continuing turmoil the vast majority of those who were tasked with revenue collection lived cushy lives. The Oversight Committee Chairman disclosed that one of the key Inland Revenue officials owned properties in Las Vegas, whereas another top official had walked free after being caught with heroin.

Alleging that some of those holding key positions in the revenue collection set-up collaborated with tax dodgers, the MP said that similarly the Excise Department and liquor manufacturers perpetrated massive tax frauds. Responding to another query, MP Aluthgamage emphasised that actually the increase in the price of liquor had helped certain liquor manufacturers.

Appreciating the interventions made by MP Patali Champika Ranawaka to pressure the Excise Department to do its job, MP Aluthgamage said that routine checks had revealed the widespread use of fake security tax stamps affixed to bottles of liquor countrywide. The Excise Department bosses should be held accountable for this situation as liquor manufacturers could not engage in such massive frauds without the blessings of the department.

Referring to a delay in agreement with the IMF over the releasing of the second tranche of USD 2.9 bn Extended Fund Facility (EFF), MP Aluthgamage said that the flaws in the revenue collection process, too, had contributed to the situation. The MP alleged the Inland Revenue, Customs and Excise Departments continued to undermine the revenue collection. “They always come up with lame excuses to thwart efforts to streamline tax collection,” he said.

Alleging that frauds involving the Excise Department and liquor manufacturers caused 40 percent loss in revenue, MP Aluthgamage alleged that a significant amount of that money ended up with Excise Department personnel at all levels. “This is the sad truth,” the ex-Minister said.

According to him, the Inland Revenue, Customs and Excise were required to collect Rs. 1,667 bn, Rs 1,217 bn and Rs 217 bn, respectively, this year.  But so far this year, they had collected only Rs 956 bn, Rs 578 bn and Rs 109 bn, respectively, MP Aluthgamage said.

MP Aluthgamage said that he had been targeted by Inland Revenue after he raised the issues at hand publicly. “I was investigated,” the MP said, adding his efforts couldn’t be derailed by such efforts.

MP Aluthgamage said that he had urged President Wickremesinghe to take remedial measures as soon as possible. “Our continuous failure to act even after the declaration of bankruptcy is unacceptable.”



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PNB detect large haul of methamphetamine and heroin in local fishing trawler intercepted by Navy

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Acting on credible information, the Sri Lanka Navy launched a special operation on the high seas on 11 Apr 25, resulting in the apprehension of  06 suspects along with a local multi-day fishing trawler, believed to be involved in smuggling of narcotics.

Subsequently, the intercepted trawler was brought to the Dikkowita Harbour, where a thorough inspection was carried out with the assistance of the Police Narcotic Bureau (PNB) experts, leading to the detection of  approximately 77kg and 484g of heroin and 42kg and 334g of methamphetamine (Ice).

The consignment, which had been meticulously hidden in the trawler, was handed over to the PNB for onward legal action on 12 Apr.

 

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Government to initiate new projects to help rural communities to strengthen the national economy – Prime Minister

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Prime Minister Dr. Harini Amarasuriya stated that the government is currently working to initiate new projects across every area of Sri Lanka and to bring the necessary investments to rural areas in order to improve the participation of the communities in strengthening the national economy.

The Prime Minister made these remarks while addressing a public gathering held on Saturday (12th) in Nanattan, Mannar.

Prime Minister further stated:

“Our country has reached a decisive point. The government of the National People’s Power (NPP)  understands the expectations of the people. The general public came together despite the ethnic and religious barriers to exercise their voting right against  corruption in politics that existed in this country. Consequently, Anura Kumara Dissanayake was able to become the President in 2024. A month later, we formed a Parliament that will initiate in changing the history. Today, we have a government made up of 159 members. There is now a strong group in Parliament standing against corruption and a government that represents all ethnicities, religions, and regions. For the first time in history, we have formed a government made by a single party that represents everyone. The people are the ones who made this victory possible and they are the true victors in this cause.

We are committed to protecting the trust the people have placed in us and to fulfill their expectations.

You are well aware of how weak the economy was when we came to power. Officially, we had been declared a bankrupt nation before the world. For many years, Sri Lanka had no economic growth and was in a debt-ridden economy. The tourism sector had collapsed. Due to the corruption in political authority, investors were unwilling to invest the country. Today, we have changed all that.  We have managed to steer the economy towards growth leading to investments being restored while the confidence in Sri Lanka is increasing internationally.

We are working to start new projects in every area of Sri Lanka to bring the necessary investments to the rural sector, with the aim of improving the participation of rural communities in the national economy.

The first budget of the NPP government has passed. Even though the economy is not yet strong, we focused on two main priorities in the budget: one was to develop infrastructure necessary for economic growth, and the other was to provide relief to people burdened by economic hardships. That’s why we have increased and extended the period of Aswesuma benefits. Further, vouchers to buy schoolbooks was distributed at schools with less than 300 students.

Previous governments were a burden to the people. But today, we have a very small Cabinet of Ministers. The government is no longer a burden to the people. We have reduced expenses, minimized losses, and eliminated corruption.

Because the government  is not a burden to the people, it was able to provide relief to the people. Through this budget, the basic salaries of  the public service has been increased. They have been given the opportunity to work freely. Decisions are now made on statistical data and not based on political preferences. What we expect is an independent public service. We are in need of a people-centered government as well as a public service which should be an efficient, corruption-free and people-sensitive. We have already created the necessary environment for that.

In order to develop the rural economy, the government has allocated a large amount of funding through this year’s budget. But, to ensure that these allocations are used properly to serve the people, the local government institutions need to be cleaned up. If the leaders who represents the villages are corrupt, the funds allocated will become worthless. That is why the upcoming local government elections has become extremely significant and decisive.”

The event was attended by the Members of Parliament Jegadeeswaran and S .Thilakanadan, public representatives, and candidates of local government election representing the NPP.

[Prime Minister’s Media Division]

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Batalanda: Why only now and what about the others, asks Mujibur

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SJB Colombo District MP Mujibur Rahuman launched a fierce critique of the political hypocrisy surrounding the Batalanda Commission report during Thursday’s (10) parliamentary session.

Rahuman pointed to the violent actions of the JVP, which had devastating effects on politicians, police officers, and civilians, as detailed in the Commission’s final report.

He said that the violence had disrupted vital services and created a state of lawlessness, severely affecting the public.

The MP accused political opponents of exploiting the Batalanda issue for electoral advantage, noting that for 36 years, no proposals were made to investigate the assassination of JVP leader Rohana Wijeweera.

He criticized the JVP for forming “probationary” governments with Chandrika Kumaratunga and backing Ranil Wickremesinghe in the yahapalana effort, yet failing to address the Batalanda issue during their tenures.

Rahuman also questioned the current attacks on Wickremesinghe, highlighting that many of his critics had previously collaborated with him. He called attention to the JVP’s statements regarding Gotabaya Rajapaksa’s alleged involvement in a Matale mass grave and the distribution of pamphlets on the subject during the 2022 Galle Face protests.

The MP called for accountability, questioning why no proposals were put forward on these issues when the current government came into power. He also criticized the NPP for its leaders, who, despite being involved in suppressions during the 80s and 90s, now sought positions within the government. Rahuman accused them of hypocrisy, warning against dragging the Batalanda issue into the ongoing election.Rahuman said that the historical wrongs committed by JVP political leaders cannot be erased, regardless of attempts to downplay them.

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