Sri Lanka Customs and the Inland Revenue Department (IRD) today signed a Memorandum of Understanding (MoU) to establish a joint mechanism for conducting investigations aimed at preventing revenue losses to the State.
The MoU was signed at the Ministry of Finance on January 13, in the presence of Treasury Secretary Harshana Suriyapperuma.
According to officials, an operational committee attached to Sri Lanka Customs has identified widespread under-valuation of imported goods at the point of declaration as a major cause of tax revenue losses to the government.
Investigations have also revealed that some business entities import goods through third parties on a temporary basis to evade taxes. As a result, such businesses are also found to be avoiding the payment of due taxes to the Inland Revenue Department.
To address these issues and minimise tax evasion, the IRD and Sri Lanka Customs have agreed to operate as a coordinated joint mechanism under the newly signed MoU. Officials said the agreement would strengthen information sharing, improve enforcement and enhance the effectiveness of investigations related to customs duties and inland revenue taxes.
The initiative is expected to improve revenue collection and curb irregular practices in imports, while reinforcing regulatory oversight under the supervision of the Ministry of Finance. (Newswire)