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2023-06-13

News Categories : Committee News 

Sri Lanka Customs is not able to reach the revenue expected from the budget due to the restrictions imposed on the import of goods including the suspension of the import of vehicles - Sri Lanka Customs

  • The Government will take a quick decision regarding the import of vehicles - Sectoral Oversight Committee Chair Hon. Mahindananda Aluthgamage
  • It was disclosed that only 200 dollars needed to clear gems from customs irrespective of numbers.
  • Attention towards the absence of a specific time limit to finalize litigation related to the customs
  • Attention directed regarding the container inspection procedure
  • Attention towards non-inspection of customs officers working at the airport
  • Focus on increasing the relationship between Inland Revenue Department and Sri Lanka Customs

 

The Sri Lanka Customs disclosed that they are unable to achieve the expected revenue from this year's budget due to the restrictions imposed on the import of goods including the suspension of vehicle imports. This was disclosed at the Sectoral Oversight Committee on National Economic and Physical Plans.

Sri Lanka Customs officials stated the above at the Sectoral Oversight Committee on National Economic and Physical Plans Chaired by Hon. Mahindananda Aluthgamage which met recently (June 08) to discuss the contribution of the Sri Lanka Customs in order to increase government revenue.

The Chairman of the Committee, Member of Parliament Mr. Mahindananda Aluthgamage said that 1226 billion rupees are expected as income of Sri Lanka Customs in this year's budget and only 330 billion rupees have been received in these 5 months. Because of this, there is a problem of reaching the expected income from this budget.


Thus, the officials who were present said that this expected income cannot be reached until the import restrictions including the import of vehicles are in place. Under the said situation, they predict that the income that can be obtained this year is 783 billion rupees. The officials pointed out that the Ministry of Finance has also been informed about this. Moreover, they statistically pointed out that about 20% of the revenue received by the customs comes from the taxes imposed on the import of vehicles and until the restrictions on the import of vehicles are in place, this expected revenue cannot be reached. Furthermore, the officials said that the highest tax revenue from 2014 to 2022 was collected in the year 2018 and the tax amount was 923 billion rupees. Thus, it was mentioned here that 194 billion rupees have been received from the taxes imposed on the import of vehicles. Due to this, since the import of vehicles has been restricted for a period of 3 years, the income of the customs has decreased and if the import of vehicles is allowed from this month, within the next 6 months, 150 billion rupees can be collected as tax on the import of vehicles, the officials pointed out.

Because of this, the officials pointed out the possibility of importing vehicles under a credit line system with another country and that it is the best way to increase the customs revenue without going abroad. The officials also said that if the proposals of the customs are fulfilled, the revenue can reach around 1100 billion rupees.

The Chair of the Committee said that since discussions have already started on this matter, the government is working to take an urgent decision regarding the import of vehicles.

The focus was also directed towards the tax revenue during the import and export of gems and gold. Thus, the officials pointed out that according to a gazette notification issued in 2012, only 200 dollars can be charged to release any number of gem stones from customs.

Due to this, the officials requested to re-implement the system of tax collection based on the assessed amount that existed before the year 2012.

Also, attention was drawn to the lack of a specific period to conclude litigation brought in by the customs and the Committee Chair mentioned that he would discuss with the minister of justice as soon as possible and prepare a system for this. It was also mentioned that about 1200 containers have been detained at the port terminal for several years due to court proceedings.

Furthermore, there was a long discussion regarding the method of container inspection and it was mentioned that about 60% of the imported goods are taken out from the green area section. It was mentioned that these are not checked and things like sugar, fertilizer and rice are brought in like this. However, the officials pointed out that cigarettes and alcohol are being smuggled in among these goods.

The Committee Chair pointed out that information has been received that large frauds are taking place due to the fact that the customs officials working at the airport are not subjected to inspections. Given the said, the customs officials said that they will check this and issue an order giving permission to the customs officials to inspect the matter.

The customs officials also pointed out the need to develop a technical system to increase the relationship between the Inland Revenue Department and Sri Lanka Customs to increase the revenue of the customs.

Members of Parliament Hon. Wimalaweera Dissanayake, Hon. Ashok Abeysinghe, Hon. Gunathilaka Rajapaksha, Hon. Nipuna Ranawaka Hon. Sudath Manjula were present at the Committee meeting held.

 

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