Vehicle tax relief plan for select few foiled
The Finance Ministry’s attempt to grant special tax concessions for selected few persons for the import of luxury vehicles has been thwarted by the Sectoral Oversight Committee on Public Accounts.
The country would be deprived tax revenue of Rs. 104 million by granting these tax concessions, officials said.
The Public Accounts Committee (PAC) headed by MP M.A. Sumanthiran has recommended to Parliament not to approve orders granting tax relief for 26 persons who opened Letters of Credit (LCs) in their names on or before 26.05.2016.
These orders were made by the Finance Ministry under the Excise (Special Provisions) Act recently and it was pending parliamentary approval.
The PAC report presented in Parliament recently revealed that a special tax relief seems to have been given to selected individuals and not to all who might fall into the same category of persons who may have opened LCs on or before 26.05.2016.
Mr. Sumanthiran noted that giving such a tax relief for selected persons will definitely cause an injustice to hundreds of others who were in the same category of selected few.
He pointed out that the Finance Minister should divulge details of these lucky persons to Parliament and as to how these individuals were selected to receive such tax relief and under what basis.
If such relief is to be given for any justifiable reason it must necessarily be extended to all persons who fall under that category and not to selected individuals, the committee report emphasised adding that this was a bad precedence and should not be permitted.
Further the Committee decided to request the Minister of Finance to make known to Parliament and to the country the background of each of these individuals, since on cursory glance the Committee was able to ascertain that there are relatives such as father and son and several medical professionals in this list.
Excise duty concessions with certain conditions were granted for the vehicles imported on a concessionary permit by a Member of Parliament, a Sri Lanka diplomatic officer who serves in missions abroad and a member of Provincial Council, Treasury sources revealed.
Tax exemptions were also granted for importing vehicles for the Members of 8th Parliament and vehicles imported for the official use of the President or the Prime Minister.
Excise duty concessions with some conditions were granted for the vehicles imported on a concessionary permit for those who rendered distinguished service to the country or awarded to such persons, Treasury sources said.