The government’s decision to increase the import tax on Gold by 15% would only create more room for illicit ways to smuggle gold to Sri Lanka, Joint Opposition Member MP Bandula Gunawardana accused.
Addressing a news conference, he stressed that increasing the amount of tax rates on goods like Gold would be of no use because when tax is imposed on such goods, the smugglers tend to import them illegally so that the government would not be able to accumulate its tax revenue as expected.
“It was not only the increased tax amount of 15% that the importers have to afford but also the costs like National Building Tax and custom duties are also linked to the tax,” MP Gunawardana said.
“The selling price of a gold sovereign is recorded as Rs.55,000. As a result of the tax increase, the customers will have to bear an additional Rs.8,000 or more to buy jewellery” MP Gunawardana added.
He said increment of tax would not amplify the Govt's revenue but would only create tendency among those who smuggle gold to import them in illegal means. (Sheain Fernandopulle)