Economy & Growth

Customs, Inland Revenue to conduct investigations through joint mechanism

A Memorandum of Understanding (MoU) was recently signed between the Sri Lanka Customs and the Inland Revenue Department to conduct investigations through a joint mechanism.

Accordingly, the MoU was signed on Tuesday (13) at the Ministry of Finance to establish a joint investigation mechanism between the Sri Lanka Customs and the Inland Revenue Department in the presence of Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance.

It has been identified that the government is losing tax due to undervaluation of goods by importers. Furthermore, it has been revealed that some businessmen are evading customs duties by importing goods through third parties on a temporary basis, and thereby those fraudulent importers are also evading the payment of the due taxes to the Inland Revenue Department. Accordingly, the joint mechanism will minimize the relevant issues.

A team of senior officials from the two departments submitted proposals for the joint mechanism, and the preliminary MoU for the implementation of those proposals was signed here.

Besides, this agreement will take steps to jointly investigate and audit the declarations made by importers of goods and the trading community to the Inland Revenue Department and Sri Lanka Customs. The government has also focused on increasing the efficiency and effectiveness of the Sri Lanka Customs, the Inland Revenue Department and the Excise Department. Accordingly, the ‘Revenue Administration Reforms and Modernization Bureau’ affiliated to the Presidential Secretariat has appointed a steering committee to identify and propose reforms related to these three institutions.

The primary objective of this bureau is to draw attention to the measures taken by the government to increase the state tax revenue in Sri Lanka.

Source: Daily News