🚨 Five Coconut Oil Importers Face Allegations of Rs. 9.7 Bn Tax Evasion

• Key Allegation: SJB MP S.M. Marikkar raised concerns in Parliament that five coconut oil importing companies have evaded Rs. 9.7 Bn in taxes over the past 2.5 years (since 1 January 2024). • Applicable Levies: The Inland Revenue Department (IRD) mandates that coconut oil production and sales are subject to an 18% Value Added Tax (VAT) and a 2.5% Social Security Contribution Levy (SSCL). While one importer has complied, four others continue to avoid payment via ongoing legal appeals. • Health Concerns: Questions were raised over whether unrefined crude coconut oil containing toxic aflatoxin was distributed into the local market under the guise of processing exemptions. • Government Response: Economic Development Deputy Minister Nishantha Jayaweera confirmed the IRD rejected the importers' tax exemption claims. However, tax recovery is currently delayed due to mandatory legal appeal processes available to the taxpayers. The government reaffirmed its commitment to non-interference and legal tax recovery.