More bitter truths surface regarding sugar scam

The sugar scam amounting up to 16 billion rupees has again become a hot topic for discussion. Those involved in this scam were accused of evading paying government tax. Businessmen with close links to the government were accused of stealing public money. After the Covid, the price of sugar in the market increased several times. 

A few sugar importers benefitted from this massive tax reduction. There was one particular businessman who benefited the most from this tax cut. He had the upper hand in this deal. He had stockpiled huge stocks of sugar surpassing all other businessmen. This businessman had paid the revised tax of 25 cents for those stocks. Under the guise of this tax concession he had large volumes of sugar imported from November 2020 to February 2021. When he finished storing this stock within 3 months, the government raised the sugar import tax to 40 rupees, according to Opposition sources in parliament.

The said businessman’s company profited largely through this while the sugar scam cost the state 16 billion rupees in terms of taxes. All these matters relating to tax were strongly criticised by the opposition. During this period sugar was sold at higher prices without offering any relief to the public. At that time Opposition parties charged that the sugar stocks of the said businessman had been sold to Lanka Sathosa at the wholesale price of 120 rupees. Much wanted information relating to this businessman surfaced after that. His name was mentioned in and outside parliament. The media also reported the name of this individual. Accordingly, the businessman was identified as Mohamed Sajad Mawzoon, the owner of Pyramid Wilmar Private Company. 

With the special statement made by the State Minister of Finance Ranjith Siyambalapitiya in Parliament, the sugar scam was back under the spotlight. Siyambalapitiya said that although the loss resulting from the sugar scam was about 16 billion rupees, only 30 percent of that can be recovered and it can be levied as income tax on sugar importers. 

He also said that under the present law, 24 percent can be collected as income tax from the companies concerned and that it is possible to increase that amount to 30 percent. Even though the sugar tax was slashed, the consumer didn’t receive a benefit. The Auditor General, in a report, pointed out that those who committed the tax fraud should be identified and that relief be given to consumers. According to the report, it is possible to recover the loss of revenue.