Traders trying to get undue profit from VAT hike: Siyambalapitiya

2 January 2024 07:19 am - 26 - {{hitsCtrl.values.hits}}

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Colombo, Jan. 2 (Daily Mirror)- Sri Lanka had seen a drastic increase in imports to the country during the last two weeks aiming to gain undue advantage of the VAT increase which came into effect from January 1, State Minister of Finance Ranjith Siyambalapitiya said yesterday.

Speaking to Daily Mirror, he said some people were trying to fish in troubled waters with the VAT increase where they had imported large amounts of goods than the requirement of the country, aiming to gain undue profits.

He said imports had gone up by 50 to 60 per cent during the last two weeks, adding that the number of containers brought to the country on a daily basis had gone up by about 700.

“The maximum number of containers reaching the Sri Lankan ports daily is 1,000 and during the last two weeks, it has gone up to 1,700. This is an unusual and unexpected increase. This increase is not to cater to the demand of the festive season because the imports for the festive season was done in October and November. These increased imports are solely to gain advantage of the VAT increase,’ he said.
The Minister said some items were imposed 18 per cent VAT while VAT on some others was increased from 15 per cent to 18 per cent and added that the items which first came under VAT had been mostly imported during
the last two weeks.

“Building materials such as tiles, and solar panels are among the items that had been increased in large amounts. Solar panels were VAT-free earlier, and 18 per cent VAT is imposed on solar panels after January 1st. The importers are trying to gain the advantage,” he said.

When asked whether there was any mechanism to prevent the importers from gaining undue advantage from goods imported before the VAT increase came into effect, he said there was no such mechanism and said the government will take steps to inform the people of the goods imported beyond the requirement of the country.

“I have informed the customs officials to provide a list of goods imported during the last two weeks and provide the list of requirements of the country so that people can know the extra amount of items imported. These imports have not done to benefit the people but to gain undue profits,’ he said.

He said there was misunderstanding and miscommunication on the imposition of VAT and added that people will be well-informed of the new VAT imposition during this week.

Comments - 26

VAT Akka Tuesday, 02 January 2024 07:31 AM

The deputy Finance Minister himself does not understand the VAT mechanism. The VAT is collected by businesses on behalf of the tax dept and paid to IRD after deducting the input tax . Businesses can not make profits from VAT and need not.

Dee Tuesday, 02 January 2024 10:54 AM

You are truly one of those ‘Akkas’ . Half the people charging VAT from end customers are not even registered, no tax file even. The input vat is just a fraction of the so called VAT charged from the end user.

Sambo Tuesday, 02 January 2024 07:58 AM

Why are you complaining. You and your miserable government should know how to control it. It is the poor people who are being harassed. Why didn't you inform the the public of the price increase on fags. Were you ashamed to do so.

Jude Tuesday, 02 January 2024 08:19 AM

You guys bankrupt this country, Now don't look for scapegoats!! Huh!!

Jude Tuesday, 02 January 2024 08:20 AM

NOT only traders, Starting from the politicians, everyone screwing the public.

Anura Jayantha Tuesday, 02 January 2024 08:28 AM

As a government and law makers what have you done to ensure people are not affected? You have let your friendly traders profit and taken the public for jackasses to say these comments..go and do something about it..

maharaja Tuesday, 02 January 2024 08:41 AM

Taxi govt. and nothing under control of its ministers.

VJ Tuesday, 02 January 2024 08:44 AM

Why would you prevent the importation of goods as long as they are within the rules. The government would have collected the taxes for these goods, an unusual increase in tax revenue. What is this man complaining about? The government allowed the sugar scam deliberately to allow government friendly traders to make money at the expense of the public.

Avery Markham Tuesday, 02 January 2024 09:03 AM

If the ministers had any brains the excess imported should have been detained in the port until 1st Jan 2024. (Average imports could have been worked out from available data within customs).

Sivalingam Tuesday, 02 January 2024 09:04 AM

What a corrupt system, from top to bottom.

Dulanjoli Premadosa Tuesday, 02 January 2024 09:05 AM

Sajith will remove VAT completely.

Mahila Tuesday, 02 January 2024 09:41 PM

Yes!!!??? Then What!!???? 'Hulang'!!!??? Saw the 'CHIEF' in 2013 claiming and gaining at elections as the only Finance Minister, who successively reduced the VAT for 5 Consecutive Years, Increasing Deficit budgeting, which caused irreparable damage to the economy and resulted in Bankruptcy of the country.

ravin Tuesday, 02 January 2024 09:10 AM

Reason behind this scenario is you all having short term policies/strategies' and have not studied the system properly. Its like trying to build a house with out foundation .Leave loop holes and crying?

Business mafia acting together to scam public Tuesday, 02 January 2024 09:28 AM

Business profits will rise because of VAT. All good imported before 1 January, can now be sold at 15% or 18% price hike depending. Government has not considered about it, and should have said two months before VAT increase all goods imported will have higher import duty until VAT increase happens. Poor work by Finance Ministry that caused this scam.

H Ambilia Tuesday, 02 January 2024 10:01 AM

The officials who heard about VAT increase are in the pockets of the import mafia. Just like drug dealers have informants in the police, import mafia has people who let them know well beforehand. Probably even the EPF scammer told his business friends who give him gifts, and then is business friends start into the import business.

navratne willamune Tuesday, 02 January 2024 10:19 AM

Is the govt able to collect VAT from small businesses.big companies.food city.Keels etc its all documented and transparent. but small companies/buisness pocket vat as profit,

Jayantha Tuesday, 02 January 2024 10:32 AM

What are you there for? Why don't you Put a "Price Control" in place? Don't have the guts?

Sanka Tuesday, 02 January 2024 01:45 PM

Thank you for informing us. We will take necessary actions and get back to you, sir

Jega Tuesday, 02 January 2024 02:25 PM

You can put a sticker for special items coming under 18 % tax imported after January 1st before they are put for sale with the serial numbers if possible. You can instruct the traders to sell the items that were imported before January 1st according to the old price. At least that will provide some relief to the consumers. If that is not practical can identify such items and ask the traders to pay the additional tax income to the government.

Be Fair Tuesday, 02 January 2024 03:26 PM

JUST LIKE ANY POLITICIAN

Ram Tuesday, 02 January 2024 03:45 PM

Catch the unscrupulous traders and have them prosecuted without talking

Ajith Tuesday, 02 January 2024 06:11 PM

VAT registration number must be shown on the receipt issued by the vendor. If the VAT registration number is not shown on the invoice, the trader cannot charge VAT to the customer. People should be aware of this.

K. Ranaweera Tuesday, 02 January 2024 06:31 PM

This minister talking utter rubbish. Even before India stops exporting Bombay onions, SATHOSA also increased the price for their stocks at their outlets.

Sambo Wednesday, 03 January 2024 09:20 AM

You should have a proper procedure in place before implementing tax procedures you dom dom. You mess up and then speak bull shit.

Patcitz Wednesday, 03 January 2024 04:32 PM

Your explanation will never reduce the burden on people in any way.

Worried guy Thursday, 04 January 2024 09:56 AM

What is wrong in making an effort to earn some money legally when there is an opportunity? You remember you allowed the Sugar scam?

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Traders trying to get undue profit from VAT hike: Siyambalapitiya

Comments - 26

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