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Businessmen allied with govt. involved in sugar tax fraud of over Rs.10bn: Eran

19 Jan 2021

Samagi Jana Balawegaya (SJB) MP Eran Wickramaratne today said several sugar importing businessmen allied with the government had been involved in a tax fraud amounting to Rs.10 billion. He said the fraud had been committed with the blessings of the higher-ups in the government. Speaking in parliament, the MP said the government reduced the import tax on sugar from Rs.50 to Rs.0.25 per kilo on October 13 last year. He said a multinational company by the name Wilmar Trading was an ally of the government that reaped the benefit of this tax reduction. “This company had imported only about 17,991 tons of sugar between January 2020 to October 2020 which is a percentage of 3.25 of total imports. The other companies have imported about 536,094 tons of sugar during the same period. After the tax revision in October, this company has imported 102,180 tons of sugar within 90 days creating a monopoly. The other 14 companies had imported only about 71,336 tons. This means the benefit of Rs. 0.25 tax was reaped by the government's ally," he said. He said the government is now looking for Rs.10 billion to import the COVID-19 vaccine and added that the government could have easily found the funds had it prevented the sugar tax fraud. “The government has not yet given a clear answer to these allegations,” he said. He said the gazette that stipulated a maximum retail price of Rs.85 per kilo of sugar was still in effect and therefore, the government should at least give that benefit to the consumers.

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