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COPF questions Inland Revenue Dept. on a wide range of subjects

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COPF chairman Dr Harsha de Silva and MP Ravi Karunanayake and committee officials at the last COPF meeting

The Inland Revenue Department (IRD) has been able to collect only 10 percent of taxes due from the eight million strong workforce, it was revealed during a probe conducted by the Committee on Public Finance of Parliament.

This was revealed during a COPE probe on IRD at the parliamentary complex on Tuesday (18), parliament sources said.

The COPF chaired by Dr. Harsha de Silva summoned to discuss the Inland Revenue (Amendment) Bill to amend the Inland Revenue Act, No. 24 of 2017.

The issue that IRD has only been able to collect taxes from 800,000 when there are approximately 8 million in the workforce came up when the Committee took into consideration the proposal that PIT (Personal Income Tax) relief to be increased from Rs. 1,200,000 per annum to Rs. 1,800,000 per annum under the Bill.

The Bill while proposing PIT relief be increased from Rs. 1,200,000 per annum to Rs. 1,800,000 per annum, also Income Tax rate on betting and gaming, tobacco and liquor industries to be increased from 40% to 45%.

Furthermore, export of services will be liable for income tax at the rate of 15% and proposals have also been made that Withholding Tax (WHT) rate on interest to be increased from 5% to 10%.

Considering PAYE data analysis in-depth, the COPF concluded that there is an error in the existing data. Accordingly, the Committee Chair directed the officials to provide an accurate data analysis to the Committee.

Moreover, it was also disclosed at the Committee on Public Finance that the implementation of obtaining a Taxpayer Identification Number (TIN) while being essential for paying taxes / importing/exporting or obtaining any services from the Inland Revenue, is not functioning. The Committee instructed the officials present to update the Committee on the status regarding the smooth execution of the process.

Considering the proposal on Income Tax rate on betting and gaming, tobacco and liquor industries to be increased from 40% to 45% the Committee expressed its dissatisfaction over the failure of the Ministry to duly establish a casino regulator. Furthermore, the Committee Chair also expressed its dissatisfaction given that the Inland Revenue Department had failed to provide proper data requested by the Committee previously on the revenue received from Casino operations of the last five years.

The Committee also questioned official present regarding having to pay 25% against a tax appeal. The Committee questioned if it is ethical to demand a cash deposit instead of a bank guarantee when making an appeal.This meeting was attended by Deputy Minister Dr Harshana Suriyapperuma along with MPs Ravi Karunanayake, Wijesiri Basnayake, Nimal Palihena.



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Racketeers imported luxury cars, fraudulently declaring them as tractors: COPA

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State coffers suffered huge losses

A probe conducted by the Auditor General’s Department and the Parliamentary watchdog committee, COPA (Committee on Public Accounts) has revealed that a large number of luxury cars and SUVs have been imported with the help of forged documents that declared them as tractors.

During a recent COPA investigation into the Department of Motor Traffic (DMT), it was disclosed that the files related to the registration of those vehicles had gone missing.

COPA Chairman Aravinda Senaratne pointed out that BMWs and Mercedes-Benz cars had been declared as tractors. A total of 158 such cases had been specifically identified, the COPA said.

At the last COPA meeting, the DMT was instructed to provide details regarding those instances, but the Department has not yet done so. Some officials had already been identified and charged with the fraudulent registration of vehicles, Senaratne said.

“Wrong information about these vehicles has been entered deliberately. Their years of manufacture have been altered. According to our records, whenever an issue is raised, officials claim that the relevant files are missing,” Senaratne stated.

Current Commissioner General of the DMT, Nishantha Weerasinghe, said that those incidents had occurred before he assumed office.

Former DMT Commissioner General Sumith Alahakoon revealed that he had lodged two complaints with the CID. “When I took office, there were about 12 container loads of files flagged for errors. Out of those, 118 files were recovered by internal auditors and submitted to the CID. Thereafter, I was removed from my post,” he said.

The COPA Chairman accused the current DMT Commissioner General and his officials of failing to follow up on the complaints lodged with the CID by his predecessor.

When asked about action taken against the prime suspect in the fraud involving the luxury cars imported as tractors, the current Commissioner General said the suspect had been released due to insufficient evidence. A system analyst had been interdicted as investigators found that the database contained wrong information about vehicle imports.

COPA member MP Chandana Sooriyarachchi remarked that COPA investigations would be meaningless if officials sought to absolve themselves of responsibility simply by claiming that files had gone missing.

Sooriyarachchi said such fraudulent actions had cost the state coffers billions of rupees.The COPA Chairman said all aspects of the case would be thoroughly investigated.

by Saman Indrajith

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Kariapper finds fault with NPP over Gaza statement

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Kariapper

SLMC General Secretary Nizam Kariapper, MP, yesterday (23) said that the National People’s Power (NPP) government owed an explanation as to why it continued to ignore indiscriminate Israeli attacks on Gaza.

Parliamentarian Kariapper pointed out that a statement, dated March 21, issued by Foreign Affairs, Foreign Employment and Tourism Ministry, while expressing deep concern over the deteriorating conditions in Gaza, requested all sides to avoid any action that would lead to further escalation of the situation.

The government statement conveniently failed to mention that Israel killed over 400 civilians and launched a fresh ground offensive in Gaza regardless of the ceasefire in place, lawmaker Kariapper said. The top SLMC official accused the NPP government of remaining silent on US approved slaughter of civilians taking place.

“The majority of victims in the Gaza war were women and children,” MP Kariapper said. If the NPP government lacked the strength to issue a statement that properly dealt with the ground situation, Sri Lanka should have refrained from commenting on the latest developments.

The SJB National List MP said that the Jewish State also launched operations in Yemen, Syria, and Lebanon as it sought to exploit the situation to its advantage.

MP Kariapper urged the government to take a principled stand on Israeli military action that so far claimed the lives of over 60,000 people since late 2023.

Israel launched large-scale offensive action after Hamas terrorists killed over 1,200 Israeli civilians in raids carried out in early Oct 2023. Hamas abducted a large number of Israelis and a section of them have been released so far.

By Shamindra Ferdinando

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Gun violence: 22 killed in 27 shooting incidents so far this year

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Crime scene where two youths were shot dead in front of the Devinuwara Devale on Friday. (Image courtesy Derana TV)

There has been an increase in underworld activities and gun violence this year, and 27 shooting incidents have left 22 persons dead, and more than a dozen others injuried.The latest shooting incident was reported from Devinuwara on Friday night, when two gunmen killed two youths at point-blank range.

The shooting spree which began in early January has continued into March, with incidents reported from areas such as Mount Lavinia, Mannar, Galle, Kotahena, and Devinuwara. Victims included civilians gang members, and a former prison official.

On 19 February 19, a man and his two young children were brutally gunned down in Middeniya. On the same day, underworld figure Ganemulle Sanjeewa was assassinated inside the Aluthkade Magistrate’s Court by a suspect disguised as a lawyer. Those brazen attacks, often carried out in broad daylight, have caused serious concerns over public safety and the proliferation of firearms in criminal networks.

January saw multiple targeted attacks, including the contract killing of two men in Mount Lavinia for Rs. 1.5 million on 19 Jan. A dried fish trader narrowly escaped death outside his home in Devinuwara on 13 Jan., when gunmen opened fire on a house in Dodangoda. A shooting incident on Jan 31 in Hiniduma, Galle, claimed three lives, including that of a lodge owner.

The gun violence intensified in February, with the assassination of an alleged gang member in Kotahena on February 10 and the shooting of a man near a school in Minuwangoda on 07 Feb. Following the courtroom assassination of Ganemulle Sanjeewa on 19 Feb., the violence continued with two separate shootings in Ja-Ela and Kotahena on 21 Feb., leaving two people dead.

March saw a further escalation of gun violence, with the fatal shooting of former Boossa Prison Superintendent Siridath Dhammika at his residence in Galle on 13 March. A day later, a man known as Podi Sudda was gunned down in Ambalangoda.

by Norman Palihawadane

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