Sugar importers owe the government more than Rs. 2,395 million in unpaid taxes as of December 31, 2024, according to a report from the National Audit Office, reported local media.
As per the news report by The Island Online, the findings come after the Committee on Public Enterprises (COPE) directed the Inland Revenue Department (IRD) to investigate whether importers had accurately declared their income and paid taxes on profits from sugar imports, especially in the wake of a controversial reduction of the Special Commodity Levy on sugar from Rs. 50 to just 25 cents per kilo.
In response, the Commissioner General of Inland Revenue formed a special committee to investigate the matter. The probe into 12 importers revealed that 10 of them had been issued with additional tax assessments totalling Rs. 896.8 million by the IRD’s Large and Non-Large Taxpayer Investigation divisions.
The report also noted that one of the 12 companies did not import sugar at all during the period examined. Another was cleared, with no additional tax found to be due.
These findings are now part of the IRD’s official performance report for 2024, which is under fresh scrutiny amid growing public demand for greater transparency and accountability in major import transactions.
