IRD receives over 4000 returned cheques worth Rs.2.4 billion: COPA

A total of 4831 dishonoured cheques worth Rs. 2.4 billion was received by the Inland Revenue Department during the first six months this year.

This was revealed at the Committee on Public Accounts (COPA) held in Parliament. It was also found that 3817 cheques close to Rs.1.4 billion were more than three years old.

The committee questioned the lack of legal action in this regard and it was revealed that the department does not possess the authority to take legal action. 

Chairman of COPA Kabir Hashim pointed out that this is a criminal offense and  necessary legal proceedings in this regard should be implemented soon. A report was requested to be given to the Committee within a month regarding the legal action taken in this regard after consultation with the Attorney General's Department. 

It was also revealed that a staggering Rs.773 billion is due as arrears of taxes, penalties and interest as at June 30 this year.

It was disclosed that an amount of Rs. 201,400,855,198 (201 billion) has been identified as income that can be collected without any legal concern and that Rs. 572,557,001,420 (572 billion) has been identified as income that has been temporarily suspended due to certain reasons.

Mr. Hashim pointed out that the government’s expected tax revenue in 2022 was 1852 billion rupees and plans to increase it to 3130 billion rupees in the 2023 budget. 

The Auditor General pointed out despite spending over Rs. 10 billion rupees, the Revenue Administration Management Information System (RAMIS) system is not functioning properly. 

He said that this has been pointed out in the COPA Committee on several occasions before but no formal steps have been taken in this regard.

The COPA recommended a report within a month with dates on making this RAMIS system operational in a manner suitable for the country.