The Commissioner General of the Inland Revenue Department, Sepalika Chandrasekara, announced that an investigation has been initiated into allegations of tax evasion amounting to over Rs. 5 billion by four major foreign coconut oil importers. The alleged evasion involves non-payment of VAT and the security levy.
Speaking to the media, Chandrasekara stated that the investigation aims to identify the institutions accused of failing to pay the taxes. Relevant data has been collected since last week to support this effort.
Officials from the Inland Revenue Department have begun analyzing import records to gather evidence and move forward with the inquiry.
The Local Coconut Oil Producers Association has lodged a formal complaint with the department, claiming that the four importers evaded the mandatory 18 percent VAT and the 2.5 percent security levy, leading to significant financial losses for the government.
Additionally, the complaint alleges that the unrefined coconut oil brought into the country is being sold in the market without proper labeling, violating regulatory standards that require such imports to be identified as refined oil.
The issue was first brought to public attention last week through a report by Mawrata newspaper.
