The Committee on Public Finance (CoPF) has raised concerns over potential revenue losses arising from inconsistencies in tax collection on imported motor vehicles, particularly used and short-distance driven units.

During a recent meeting, CoPF Chairperson MP Dr. Harsha de Silva questioned officials from the Sri Lanka Customs Department on the taxes levied on both registered and unregistered vehicle imports.

De Silva specifically sought clarification on the collection of value-added tax (VAT) on used vehicles and whether the process was equitable and efficient.

Officials informed the Committee that there is a variation in taxes imposed on used vehicles that are not registered and that have been driven only short distances.

De Silva pointed out that, as the government expects substantial tax revenue from vehicle imports, the country is losing significant revenue under the current situation.

Accordingly, he instructed officials from the Sri Lanka Customs Department to submit a report to the Committee on the taxes collected from a sample of imported used vehicles.

Meanwhile, the CoPF has granted approval for Resolutions under Section 8 of the Appropriation Act No. 34 of 2023 to revise the limits of several Ministries and Departments for the year 2024.

The revision of the limits of advance accounts of several Ministries and Departments for the year 2024 has already been set, and under the provisions of the Appropriation Act, the Minister of Finance is empowered to revise these limits of advance accounts by way of a Resolution based on emerging needs of the relevant year.

Officials, in providing clarification on the proposed revisions, further stated that these revised limits must be presented to Parliament for approval.

Accordingly, advances for the following received the Committee’s approval: Monies for bribery detection (Commission to Investigate Allegations of Bribery or Corruption); printing, public sales, and publications (Department of Educational Publications); the stores advance account for explosive items (Sri Lanka Navy); prison industrial and agricultural undertakings (Department of Prisons); the seized and forfeited goods advance account (Sri Lanka Customs); miscellaneous advances (Department of State Accounts); the railway stores advance account (Department of Sri Lanka Railways); the stores advance account (Government Factory); the Government Factory work done advance account (Government Factory); and advances to public officers.

Commenting on the advancing monies to be used in bribery detection as bribes - Commission to Investigate Allegations of Bribery or Corruption, de Silva stated that the Committee on Public Finance would extend full cooperation for any task undertaken to curb corruption.

State Minister Dr. Harshana Suriyapperuma, Members of Parliament Ravi Karunanayake, Dr. Kaushalya Ariyarathne, Arkam Ilyas, Nimal Palihena, Attorney-at-Law Chithral Fernando, Attorney-at-Law, Thilina Samarakoon, Champika Hettiarachchi, and Lakmali Hemachandra, Attorney at Law were present at the Committee meeting held.