Missing Money

The Inland Revenue says it is due around Rs 24 billion as back taxes from indirect taxes like GST, VAT, Turnover Tax and the National Security Levy (NSL). The Inland Revenue says it is due around Rs 24 billion as back taxes from indirect taxes like GST, VAT, Turnover Tax and the National Security Levy (NSL). “The total amount due by end of 2003 was Rs 20 bn in GST and Rs 5 bn from other indirect taxes,” said Deputy Commissioner, Inland Revenue, H Seneviratne.

Last year the Inland Revenue managed to round up nearly Rs 1 bn worth of back taxes, mostly GST and NSL but that still leaves around Rs 24 bn to track down.

The department stopped collecting both GST and NSL in 2002 when local businesses stashed their cash under cover of the blanket tax amnesty offered by the then UNF government.

Collection was reactivated last year and businesses told to pay up their dues, after the current UPFA government repealed the amnesty.

But the Inland Revenue says actual collection, out of the Rs 24 bn due, could be much less, as more people appeal against tax assessments done by the department.

Meanwhile the Inland Revenue is preparing for tough ac