Five companies that imported unrefined coconut oil owe Rs. 2.891 billion in outstanding taxes for 2024, Deputy Minister of Economic Development Nishantha Jayawira told Parliament yesterday (06).
The Deputy Minister said Rs. 2.723 billion of the outstanding amount is Value Added Tax (VAT), while Rs. 168 million is Social Security Contribution Levy (SSCL).
He made the statement in response to a question raised by Parliamentarian S.M. Marikkar.
The Deputy Minister said tax assessments had been issued to the five companies and that the companies had filed appeals against the assessments. However, he stressed that no concessions had been granted to any of the companies in relation to the taxes.
He also stated that one of the six companies concerned had paid Rs. 2.429 billion in VAT and Rs. 434 million in Social Security Contribution Levy for 2024.
The parliamentarian had questioned why Rs. 9.7 billion in outstanding taxes from 2024 to June this year had not been recovered, suggesting that the delay in collecting such a large amount was cause for concern.
Responding to this, the Deputy Minister said the delay was due to appeals filed by the companies.
He further explained that it was difficult to recover the outstanding taxes while the appeals were being considered. He said some companies were arguing that no manufacturing process was carried out at their establishments. The matter has also been referred to the Attorney General’s Department for its opinion, he said.
