News

The Government is to inquire into an audit query by the Auditor General regarding the shortfall of Rs. 360 billion on State revenue in the from of taxes and tax refunds.

The query sent to the Treasury Secretary last month was brought to President Mahinda Rajapaksa’s as well as the Cabinet’s attention and the Treasury would make its comments, Deputy Finance Minister Ranjith Siyambalapitiya told The Sunday Times.

The Treasury has sought time till June 25 to answer, after which the “Special audit report on state tax management” in which the losses are highlighted would be tabled in Parliament.

The Report to Parliament is likely to be reviewed depending on Treasury comments, The Sunday Times learns.

The issue was raised in Parliament last week by JVP MP Wimal Weerawansa who asked for a debate on the audit report. However, the Government said a debate could be held only once the report was tabled in Parliament and that what had been sent to the Treasury was a draft.

Among some of the irregularities are the payment of Rs. 2.2 billion as VAT refunds by cheque and 35 vouchers to seven institutions which had neglected to pay Rs. 802.4 billion in taxes. The report has also highlighted the starling increase in tax arrears since 2004. Tax arrears for that year which had stood at Rs. 54.4 billion had gone up to Rs. 95.1 billion, an increase of Rs. 40.7 billion. VAT arrears had also risen drastically from Rs. 5.3 billion in 2004 to Rs. 38.9 billion by the next year.