Samagi Jana Balawegaya (SJB) MP S.M. Marikkar has raised serious concerns in Parliament regarding an alleged large-scale tax evasion linked to coconut oil imports during the tenure of the previous government.
Speaking in Parliament, MP Marikkar stated that imported unrefined coconut oil, once refined and sold in Sri Lanka, is subject to VAT and a cess totalling 20.5%. He alleged that six companies, importing coconut oil under the names of three entities, refined and sold the product without paying the required taxes. Instead, he claimed, they had written to the former President seeking tax relief.
According to Marikkar, the request had been forwarded to the Inland Revenue Department (IRD), which had in turn sent back its recommendations. However, he said no action had been taken since then to recover the taxes owed.
“Shame on you, Honorable Speaker. In the last budget speech, I highlighted this matter and requested that the tax be recovered. I asked for the documents, and they were given. Then, in February, when I questioned the Prime Minister, she accepted that the companies were liable to pay the tax and said the government was working to collect it. Nine months have passed, yet not a single cent has been recovered. The assessment report has not even been submitted,” he said.
Marikkar further noted that when he raised the issue with the Minister of Trade through an oral question, the minister assured that action would be taken, but no progress had been made.
He stated that the government stands to lose more than Rs. 10 billion if the taxes remain unrecovered. He also questioned whether the companies had sold crude coconut oil without refining it, which he said could pose serious health risks.
“As a public representative, after questioning the Prime Minister and receiving answers, nothing has been done. When I asked the Minister of Trade, he also said ‘Yes, I will do it’, but again nothing happened. Now, I have submitted the matter to the Deputy Minister to see what can be done. I have doubts whether this government, which said it would not steal a single rupee, is now acting in favour of these companies—or we do not know whether the fund has already received the money,” he added.
Chanaka Liyanage
