The Hon. S.M. Marikkar

¶ 01 Madam Deputy Chairperson, we debate the expenditure head of the Ministry of Trade, Commerce, Food Security and Cooperative Development. Minister Wasantha Samarasinghe is a trade union leader and an anti-corruption organizer. I will focus on two matters.

¶ 02 First, six months have passed since the President assumed office. On the campaign trail he promised to remove VAT on food, education, and health immediately. He even said people must pay tax when sick or when children study—his own words. Through this Ministry, food items are affected. Unfortunately, relief has not materialized; prices have not reduced, nor have incomes increased. Many who voted after watching social media expected instant change but have seen none.

¶ 03 Second, under former President Ranil Wickremesinghe, large volumes of coconut oil were imported. I raised this before; the Minister promised a reply at 3.30 p.m., which never came. Later, during Questions to the Hon. Prime Minister (Feb 5, 2025), I asked: when crude coconut oil is imported and refined domestically, must VAT (18%) and SSCL (2.5%) be paid on domestic sale? The Hon. Prime Minister replied: yes—refining is manufacturing; VAT and SSCL are payable on domestic supply with effect from 1 Jan 2024.

¶ 04 I also asked what Government mechanism exists to collect these taxes. The PM replied that the IRD would handle VAT and SSCL collection.

¶ 05 I provided documents: a private company wrote on 31 July 2024 to the President/Finance Minister seeking policy direction to exempt VAT on imported crude coconut oil refined and sold as RBD oil. The Department of Fiscal Policy asked the IRD for observations. On 29 August 2024, the IRD replied that imported crude coconut oil refined locally is manufacturing and the supply of refined coconut oil is liable to VAT from 1 Jan 2024. I gave these documents to the PM. I now ask: what steps has the Government taken to collect the due taxes—losses that began under the previous administration but continued into this January, exceeding Rs. 6 billion?

¶ 06 I further ask the Minister: this anti-corruption Government—what action has been taken against three private companies alleged to have evaded these taxes? Will you continue allowing imports without collecting due VAT/SSCL? The subject seems wrongly referred to the Plantation Industries Ministry, when the issue is tax on refined supply—squarely under Finance/IRD, with Consumer Affairs Authority involved on product standards. My fear is this will be quietly buried.

¶ 07 Moreover, if crude refined locally is tax-exempted now, what happens to those who imported refined RBD and sold directly while paying taxes? Will the Government accept a double loss?

¶ 08 On rice: State Minister Nimal Karunaratne said in Nov 2024 that when you took office there was not a grain of paddy in Government stores; paddy previously bought at Rs. 120 had Rs. 10 added in handling to Rs. 130/kg, and then the previous Government decided to sell at Rs. 80/kg, incurring Rs. 50/kg loss and commissions. He also said stores like Nikaweratiya had neither stocks nor cash, and that warehouses around the country were burnt—Yatiyana (800 MT), Thebuwana (300 MT), Hasalaka (500 MT), Middeniya (900 MT), Monaragala Ranahansa (830 MT), Ranna–Unakuruwa (700 MT with two Yanmar machines), Agunukolapelessa (800 MT), plus many others in Anuradhapura, Polonnaruwa, Trincomalee, Kantalai, Ratna, Pallattara, Dammulla, Beliatta, etc. Now the Government has no place to store paddy and is at the mercy of the rice mafia. We must break the mafia while ensuring good farm-gate prices and affordable consumer prices.

¶ 09 Finally, on broader accountability, many past atrocities and issues must be addressed consistently and not selectively. I also note JVP members in the past accepted vehicle permits—so do not call us thieves. We have not stolen; we have no debts; we are not afraid. I trust the Minister will answer my questions.

¶ 10 Thank you.