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10yr tax holiday for LIOC

25 May 2012 12:17 pm - 11     - {{hitsCtrl.values.hits}}

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Lanka Indian Oil Company (LIOC), which began operations in 2003 has secured a tax amnesty for ten years through an international arbitration panel, Deputy Economic Development Minister Lakshman Yapa Abeywardane told Parliament today.

The deputy minister was responding to Janatha Vimukthi Peramuna (JVP) parliamentary group leader Anura Kumara Dissanayake who asked why the LIOC had been exempted from paying tax. 

“All the other business ventures are required to pay various forms of taxes to the state. Yet, LIOC which uses resources in this country has been exempted from it. How did it happen?” he asked.

The deputy minister said the government had informed LIOC in writing in 2009 that they should pay taxes to the government, but this request was challenged by them at an international arbitration panel in France.  

“The arbitration panel ruled that a tax amnesty should be granted to it for ten years from 2003 when the agreement was signed allowing the LIOC to enter the local lubricant market. It has this facility till 2013. After that, it will have to pay tax. LIOC informed the international arbitration panel that it makes various other payments to the state,” he said.

The deputy minister said LIOC pays for the use of fuel tanks here.(KB & YP)
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  Comments - 11

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  • Shiyam Friday, 25 May 2012 01:15 PM

    Which govt signed the agreement? PA or UNP?

    people Saturday, 26 May 2012 05:27 AM

    I suppose there is a chance of starting a new company after the 10 years?There's always loopholes

    Jerome Saturday, 26 May 2012 05:45 AM

    How does the poor man on the street benefit ? .... Does it mean LIOC Fuel will be sold cheaper ????.... OR once all is well they jack up the price and motor on and declare a massive profit !

    channa Friday, 25 May 2012 02:21 PM

    Must be the UNP

    jaya Friday, 25 May 2012 02:32 PM

    OFCOURSE PA

    probably been managed by BASIL NOW

    Fusion Friday, 25 May 2012 02:48 PM

    Tax cuts for the rich, more taxes for the poor? You know this sounds more like what the US Republicans/Conservative would do.

    Ajith Friday, 25 May 2012 03:03 PM

    But Mr.BR, make it sure, u would get ur 10% & not to worry of our citzen.

    raajahora Friday, 25 May 2012 05:05 PM

    just like that no taxes, perhaps other business ventures should collectively stop paying taxes. Wonder how the thug MP's will sustain their ill gotten lifestyles....

    Ling Friday, 25 May 2012 05:15 PM

    It does not matter who sign, Sri Lanka just have to bite it as long as is coming from India.

    garawi Saturday, 26 May 2012 02:12 AM

    How many millions did the guy who approved LIOC tax free status get ? However the minister should know that the LIOC breached the agreement because as a BOI project they should have brought in the funds but they raised the funds in SL after coming in. On this ground the LIOC tax free status can be cancelled.In fact they should be asked to leave and sell the assets to another private company whoever wants to buy. Their will be many takers.

    Ravi Friday, 25 May 2012 12:22 PM

    There you go! Only poor has to pay and rich get away with it!


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