Connect with us

News

Govt. MP slams Finance Ministry over gaping holes in tax collection system

Published

on

‘New taxes won’t help as long as system remains the same’

By Shamindra Ferdinando

SLPP MP Mahindananda Aluthgamage yesterday (30) said that in spite of him repeatedly raising the urgent need to regulate chartered accountants, as part of the overall measures to increase state revenue, nothing was being done.The former minister alleged that the Finance Ministry was turning a blind eye to a well-organized racket that deprived the cash-strapped government much needed revenue.

Lawmaker Aluthgamage said so in response to The Island queries. Demanding an explanation from the Finance Ministry, regarding its failure to regulate chartered accountants, regardless of evidence of unscrupulous activities by some of them, like certifying doctored accounts, the Kandy District MP said that the government wanted to streamline the revenue collection process.

The government wouldn’t be able to benefit from new and increased taxes as long as the revenue collection system remained in the hands of corrupt elements, the Minister said. The former minister asked whether the continuing failure to recover well over Rs 700 bn, in unpaid taxes, accumulated interest et al, could be justified under any circumstances.

The former minister said the Finance Ministry was yet to respond to accusations he made in Parliament, on Sept. 20, about large-scale tax evasion and the role played by some chartered accountants/tax consultants in the racket.It was common knowledge that when a tax return was submitted, through a firm of chartered accountants, the Inland Revenue officers hardly asked any questions, MP Aluthgamage said.

Aluthgamage added that he expected the Finance Ministry and other relevant institutions to get in touch with him. “However, they hadn’t contacted me, though the Finance Ministry, on Sept. 26, assured that the Parliament would be briefed on the developments and action taken, as regards the accusations, within a month,” the MP said.

The MP said that he wouldn’t withdraw the accusations he made in Parliament, on Sept. 20, under any circumstances. The Finance Ministry should either prove me wrong or take remedial measures as soon as possible, the MP said, urging the powers that be to address the issues at hand, or face the consequences.

Referring to what he called two glaring cases of tax evasion, involving prominent businessmen, MP Aluthgamage said that the Finance Ministry should go the whole hog. The situation was so bad the government couldn’t ignore the urgent need for overall reforming of the tax collecting structure, the ex-minister said. Reiterating the pivotal importance in regulating chartered accountants, lawmaker Aluthgamage revealed an instance of Rs 35 bn was shown as Rs 5 bn.

President Ranil Wickremesinghe holds the finance portfolios whereas Ranjith Siyambalapitiya and Shehan Semasinghe serve as State Finance Ministers. SLFPer Siyambalapitiya is responsible for revenue collection.

State Minister Siyambalapitiya, on Sept. 26, requested a comprehensive report from the Customs, Inland Revenue Department and Excise Department as regards the issues raised by MP Aluthgamage, in terms of Standing Orders (27) 2. Requesting them to submit their report, within two weeks, MP Siyambalapitiya assured that the Parliament would be briefed, within a month. Instructions were issued at a meeting chaired by State Minister Siyambalapitiya, at the Finance Ministry. Among those present were Inland Revenue chief D.R.S. Hapuaarachchi, Director General, Customs, P.B.S.C. Nonis and Commissioner General, Excise, M.J. Gunasiri.

Referring to the staff-level agreement Sri Lanka reached with the International Monetary Fund (IMF), MP Aluthgamage said that the government was taking measures to enhance revenue. The Parliament endorsed ‘Social Security Contribution Levy’, on Sept. 08, with 91 members voting for and 10 against, the former minister said, adding that it was meant to annually collect Rs 140 bn. “Taxes are necessary. All of us understand the difficulties experienced by vast majority of people, struggling to make ends meet. Indirect taxes are imposed on them, whereas those who should pay taxes, continue to evade the taxman,” MP Aluthgamage said.

MP Aluthgamage said that the current tax appeal system should be examined as interested parties continued to exploit the loopholes for their advantage. The former minister said that the reports released by parliamentary watchdog committees, COPE (Committee on Public Enterprises), COPA (Committee on Public Accounts) and COPF (Committee on Public Finance), since the last general election, revealed how the government deprived itself of the revenue by allowing interested parties to exploit the tax collection system.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Our objective is to ensure that the Commission to Investigate Allegations of Bribery or Corruption operates as an independent institution, free from any external influence – PM

Published

on

By

Prime Minister Dr. Harini Amarasuriya stated that the government’s objective is to ensure the environment for the Commission to Investigate Allegations of Bribery or Corruption [CIABOC] to function as an independent body, without influence from anyone, including Members of Parliament and Ministers.

The Prime Minister made these remarks while participating in the debate on the interim resolution concerning the determination of salaries and service conditions of the officers and employees of the Commission under the Anti-Corruption Act.

The Prime Minister stated:

“Honourable Speaker, I consider the proposal presented today on determining the remuneration and service conditions of the officers and employees of the Commission to Investigate Allegations of Bribery or Corruption to be highly important. Although the Anti-Corruption Act was passed in 2023, we only began to truly feel the presence of an active Commission from 2025.

Since then, we have had to experience a number of challenges in operationalizing the Commission. In particular, there were several obstacles, including limitations in recruiting officers, which hindered the Commission from functioning as required. It was necessary to establish several practical conditions, such as granting the Commission the freedom to determine allowances for its staff, to formulate the rules and regulations required for its operations, to recruit personnel, and to submit budget estimates relevant to its annual plans. At the time the new Director General assumed duties, there were over 4,000 investigation files within the Commission where investigations had been completed but cases had not yet been filed. Moreover, there were only about 31 legal officers.

Follow the adoption of this proposal, the Commission will be granted the authority to recruit officers, determine necessary allowances, and make independent decisions regarding financial matters. This will enable the Commission to effectively fulfill its intended mandate. This proposal plays a significant role in building a new political culture in our country, one that is anti-corruption and committed to a transparent public service that is free from bribery”.

Further commenting, the Prime Minister also addressed the country’s response to the ongoing global energy crisis.

“In the current global context, our economy and energy sector are facing multiple challenges. These conditions are constantly evolving and difficult to predict. However, it is our responsibility as a government to recognize these changes and manage their impact on our economy.

Following that, the Cabinet has decided to appoint four special committees. Accordingly, one committee will focus on ensuring the uninterrupted provision of essential services to the public; while another will make decisions on maintaining public services through energy management within the public sector; a third will work with the Procurement Commission to identify new methods of energy procurement in addition to existing mechanisms; and a fourth will examine the social impacts arising from this situation, including its effects on vulnerable groups, and recommend fair solutions, relief measures, and welfare services.

This is a situation that we, as a country, must face collectively. The public service, the private sector, the political leadership regardless of party differences and the people of our country must come together to overcome this, just as we have faced previous challenges. We are confident that, we will be able to successfully face this situation through proper leadership and management, and by making timely decisions.

[Prime Minister’s Media Division]

Continue Reading

Latest News

Heat Index at ‘Caution Level’ in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu districts

Published

on

By

Warm Weather Advisory Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 18 March 2026, valid for 19 March 2026

The general public are cautioned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.

Indoors: Check up on the elderly and the sick.

Vehicles: Never leave children unattended.

Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.

Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

Continue Reading

News

Pay hike demand: CEB workers climb down from 40 % to 15–20%

Published

on

A salary increase in the range of 15 to 20 percent is currently under discussion within the Ceylon Electricity Board (CEB), though no official decision has yet been taken, The Island reliably learns.

A senior electrical engineer who is is privy to ongoing salary negotiations, speaking on condition of anonymity, said the proposal had been put forward as a reasonable and necessary measure, rather than a rigid demand, in light of the prolonged delay in salary revisions. Earlier they have been asking for a staggering 40% salary increase.

“We are not insisting on this as a primary demand or condition. What we are requesting is for the authorities to seriously consider the possibility of granting an increase,” he said.

He emphasised that CEB employees had not received any salary increment since 2024 due to the ongoing reform and restructuring process, leaving staff to cope with rising living costs without adjustment.

“Under normal circumstances, the next salary revision would only be due in January 2027. That creates a significant and unfair gap. This proposal is, therefore, a justified attempt to secure at least a reasonable percentage in the interim,” he said.

The engineer warned that continued inaction could have serious implications for staff morale and operational efficiency at a time when the power sector is undergoing critical reforms.

Sources said that while internal discussions have pointed towards a 15 to 20 percent increase, the matter has not yet been formally taken up at policy level.

However, pressure is mounting on authorities to reach a timely and equitable decision, as frustration grows among employees over the absence of salary adjustments for nearly three years.

By Ifham Nizam

Continue Reading

Trending