11 April 2024 01:15 am
Despite the Ceylon Petroleum Corporation (CPC) implementing a VAT on discounts for Petroleum Dealers, Vice President Kusum Sandanayaka of the Sri Lanka Petroleum Private Tank Owners’ Association stated they’ll ensure uninterrupted fuel distribution until April 20.
Addressing the media, he highlighted that Petroleum Dealers are burdened with an 18 percent VAT on the CPC’s three percent discount. Despite their willingness to pay VAT, he emphasized it’s unlawful to impose VAT on this discount. He noted efforts to raise this concern with relevant authorities, including the Inland Revenue Department, Finance Ministry, and CPC, without receiving concessions for three months, Sandanayaka said.
Consequently, their association has decided to alert all members about this issue, he said.
All fuel distributors, including CPC, Sinopac, IOC, and RM Parks (Private) Limited, convened to address the issue last morning.
“Unanimously, they opted for a trade union action starting yesterday. However, we, as a responsible association, will ensure uninterrupted fuel distribution until April 20 to avoid inconveniencing consumers. If the CPC fails to hear our concerns, we’ll escalate to a union action.
Paying VAT without profit would jeopardize 60 percent of refueling centers nationwide,” Sandanayaka said.