Sugar tax reduction profited businessmen linked to Govt. while losses to state around Rs. 10 b :Eran

• SJB MP Wickramaratne says “gaja mithuru” group of Govt. profited from sugar tax cut to 25 cents
• Says consumers not given sugar at Rs. 85 MRP

By Chandani Kirinde

Eran Wickramaratne

The reduction of the Special Commodity Levy on sugar from Rs. 50 per kilo in May last year to 25 cents in October has led to losses of over Rs. 10 billion, while businessmen closely linked to the Government have made billions in profits, SJB MP Eran Wickramaratne alleged in Parliament yesterday.

Speaking during the debate on six Orders under the Special Commodity Levy Act, including the one reducing the sugar tax, Wickramaratne said the “gaja mithuru” group of this Government, along with the help of heads of state operations loyal to them have been involved in this scandal.

He said the company in question had only had around 3.25% of the market share for sugar between January to October 2020, but this shot up to around 59% of the market share within 90 days from reduction of the sugar tax.

He said that consumers were not given sugar at the Maximum Retail Price (MRP) of Rs. 85 per kg, despite the tax reduction.

“The Government has yet to address these allegations. Soon after news of the fraud broke, the Chairman of Sathosa was transferred from there as the head of the Sri Lanka Standards Institution. If the Government is trying to hide this fraud by changing chairs, that cannot be done,” Wickramaratne said.

He questioned if this is how the country is being governed according to ‘Viyathmaga’ theory.

“The Government is trying to take loans and asking the business community for money to buy the COVID-19 vaccine. The money lost due to the sugar tax scandal could have been enough money to buy the vaccine,” he said.