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Tax relief for night races, CMC loses millions
The Colombo Night Races (CNR) which started yesterday have been exempted from entertainment and all other taxes on a directive from the Western Province Chief Minister and, as a result, the Colombo Municipal Council (CMC) will lose millions of rupees in vital revenue, it was revealed yesterday.The organisers of the races that attract mainly the rich elite have been offered tax relief on a directive from Western Province Chief Minister Prasanna Ranatunga, senior CMC officials told the Sunday Times.
According to the officials, the exemption was made following a request from the organisers, but they could not provide further details except to say the matter had been decided on by the Chief Minister.“Tax exemptions are usually given to events held to raise funds for charitable purposes. In this case, however, the reason to exempt the Colombo Night Races from entertainment and other taxes is not known.
Charity purposes or otherwise, the Chief Minister has the mandate to waive taxes as is the case in the night races,” CMC Treasurer K. D. Chitrapala said. The CNR organisers have placed an undisclosed sum in a refundable deposit, according to requirements. The deposit is 10 per cent of the value of the printed tickets and it is refunded to the organisers after the event when relevant documents are furnished, Mr. Chitrapala added.However he could not reveal the exact amount of the cash deposit saying he was out of the country at that time.
Municipal Commissioner Badrani Jayewardene confirmed that it was the Chief Minister’s decision to waive the tax for this event but she did not elaborate.
When asked to comment on the issue, Colombo Mayor A.J.M. Muzammil said he was not aware of any entertainment or other taxes and suggested that the questions be directed to the relevant officials at the CMC.
Chief Minister Ranatunga could not be reached for comment since he was out of the country.It was only recently that CMC officials swooped down on a musical show in a public location and forced the organisers to stop it mid-way because they had not paid taxes. In addition, there was a zero cost for the construction of enclosures meant for VIPs and the tidying up operations along the race route since all the work was done by soldiers at public expense.Meanwhile tickets for the races are priced from Rs. 100 to Rs. 5,000 and organisers expect more than 100,000 spectators both foreign and local to be at the event.