UNP calls for Excess Profit Tax on sugar

COLOMBO: The United National Party (UNP) urged the government to impose an Excess Profit Tax to regain the lost revenue from the recent sugar tax issue.

Speaking to the media at Sirikotha, former MP Professor Ashu Marasinghe, explained that the government’s decision to reduce the import levy on the sugar imports had resulted in the Treasury losing Rs. 15.9 billion in tax revenue.

“The UNP urges the Government to immediately rectify this loss and recover the funds by imposing an Excess Profit Tax. With the introduction of this new tax, the consumers will not be burdened as prices of goods will not be increased. The suppliers will also not be unduly taxed as this will be levied against the excess profits they have earned.”

The former MP further added that with the financial year ending on March 31, it was essential that the Government immediately introduce this tax to ensure this large scale loss to the Government Treasury would not go unsolved.

“Those involved in this sugar scam have close dealings with the current Government. If the Government is unwilling to recover the lost revenue from this company, it will clearly demonstrate to the public that they are protecting those who supported them at the cost of the public. The Government is facing a mounting debt crisis and a reduced revenue stream due to economic mismanagement.

“A loss of this magnitude will further weaken confidence in the Government’s economic policies,” he added.

Prof. Marasinghe also urged the Government to immediately appoint an Independent Commission to inquire into Sathosa’s purchase and sale of sugar.

“According to the Finance Ministry, Sathosa purchased sugar, following the tax reduction, at prices varying between Rs.127 and Rs.92 per kg. However, they sold sugar at the government enforced maximum retail price of Rs. 85 per kg. The losses incurred by Sathosa must be investigated.”