A shipping company that shipped a consignment of sea sand dredged from the Kirinde fisheries harbour through the newly constructed Hambantota harbour had allegedly evaded the payment of ‘Cess’ tax to the tune of Rs. 118 million despite letters of reminders sent by the Sri Lanka Customs, the Daily Mirror learns.The Ceylon Fisheries Harbour Corporation had signed an agreement in 2006 with this company to dredge the large quantity of sea sand piled at the fisheries harbour in Kirinde and export stocks to Maldives, and sell stocks to another company to be exported to Maldives. The second company had agreed to purchase 100,000 cubes of sea sand at US $ 18. 50 per cube inclusive of all taxes and levies. It is learnt that another bidder has agreed to pay US $ 52 a cube, yet the price of US 18.50 a cube has been allegedly agreed upon for huge commissions for those involved in the transaction.
The contract had been awarded to these two companies for the sand business this year only according to the prices agreed upon in 2006. The Fisheries Ministry, later, terminated the deal a few months ago.
A top Ministry official said, “The Ministry realized certain shortcomings in this deal. Therefore, we terminated it. We will go for a new contract soon to dredge sand from the harbour.”
The first company is expected to remove 5000 cubes of sea sand within six months upon the signing of this agreement.
However, the export company is yet to pay Rs.118 million as Cess tax to the Sri Lankan Customs. Customs (Exports) Deputy Director had written to the company on July 5, 2011 asking that the payment of tax in arrears be paid within 14 days upon the receipt of the letter. The letter was also copied to Ceylon Fisheries Harbour Corporation General Manager, G.G. P. Abeysekara.
Meanwhile, UNP MP Dayasiri Jayasekara raised this issue in Parliament recently, and asked the government to take action against this shipping company.
“There are allegations that no ship arrived in the Hambantota Port. Yet, the government has failed to charge even the single ship that arrived in the port. This is the sad story,” he said. Sand has been exported in a ship named ‘Male Asian Express’ which had arrived in the Port last week too.
DailyMirror.lk: