Source : Relevations done by News First Video
On 14th Octomber 2020 government slashed the special commodity levy on a kilo of imported sugar from 50 rupees to just 25 cents. A kilogram of sugar was selling at about 130 rupees in the market at that time . However, about two weeks later, ,on October 27, 2020, the government increased the import levy on sugar to 40 rupees a kilo. But according to the special commodity levy act, the increased tax would only be applicable after one month, The government then removed the maximum retail price on sugar.
Who benefited the most during this period?
Between the 14th of October 2020 and the 20th of February 2021, 320 000 metric tons of sugar were imported by 67 importers.
Pyramid Vilma Private Limited accounted for approximately 40% of total imports.This company had imported more than two thousand metric tons of sugar when the levy was 25 cents and sold it to Sathosa for between 125 and 127 rupees. Sathosa then sold sugar at 85 rupees a kilo.
Wasn’t this a move that caused losses to the public funds ?
Not once , but twice, the government continued to insist and affirm that no scam had taken place after the taxes were slashed.
There is no fraud if the government intentionally provides concessions. .They say the people have not benefited from this. This is a normal economic theory. .The government has not acted outside its mandate. .It has taken place properly.
A report submitted by the finance ministry after repeated calls from the committee of public accounts revealed more details. The report revealed that the government had lost more than 15 billion rupees in revenue after slashing the tax. However, the government repeatedly denied that a few of their henchmen had profited off of these transactions.
These stocks of sugar had been imported on credit under an agreement to make the payments in 180 days. Due to the foreign exchange crisis, the importers will have to make the payments based on the exchange rate at that time.
A special audit has revealed that the government has lost tax revenue of 16.763 billion rupees within four months after reducing the tax from the 14th of october 2020 to the 8th of february 2021.
The audit found that during this period, Lanka Sothosa had sustained losses of 102 million rupees after purchasing sugar at a higher rate from importers and selling it at a lower price.
The audit revealed that the amount of sugar imported by Pyramid Vilma Private Limited had increased by an astounding 1222% during the period from October 2020 to February 2021.
The audit office highlighted that the tax production did not meet the government’s desire to provide relief to the people and that it greatly benefited the importers and traders.
Who is behind this Pyramid Vilma Private Limited ?
The businessman Sajaad Mohmmaed Mawzoon is one of the best friends of the Rajapaksha family. The proprietor of Shangri-La Hotels made the Shangri-La hotel available to President Nandasena Rajapaksa during his election campaign hosting numerous Viyath Maga events free of charge.
More information : Unofficial Headquaters of Presidental election
Gotabaya Operation in Shangi-La
Coconut oil imports also increased by an astonishing 270 % during the 2019 -2020 period, through imports by Pyramid Wilmar. Sri Lanka had imported USD 25 million worth of coconut oil in 2019 which increased to USD 107 million for the year 2020. A vast majority of these imports had happened in the month of July 2020, when just like in the case of the sugar tax, the tax on coconut oil imports were suddenly removed. The massive amounts of coconut oil imported during this short lived ‘tax break’ is in the range of Rs. 20 billion, SJB MP Patali Champika Ranawaka recently revealed. (Source: ColomboTelegraph)
If the government had recovered these funds at that time, wouldn’t they have been able to put it to better use ?
The government had only allocated 8 billion rupees to assist those who lost their livelihoods due to COVID-19. Other allocations by the government were 500 million rupees to resolve anomalies in pensions and 1 billion rupees for the nutrition packs . If the government had taken steps to prevent the sugar scam, wouldn’t it have been able to earn 15 billion rupees?
All attempts to conceal this massive scam have now been exposed in front of the public.
Incidents like this have once again proven that people cannot be deceived continuously.
Isn’t this scam a reason for Sri Lanka’s current economic crisis ?
#SugarTaxScam #GoHomeGota2022
More inside stories about this sugar scam by Rajapakshas : https://www.dailymirror.lk/opinion/Shocking-inside-stories-of-the-sugar-scam/172-237659