Customs to collect Rs1.5 trillion this year

Sri Lanka Customs wants to collect a massive sum of Rs1.5 trillion in 2024 exceeding last year’s revenue of Rs.970 billion as a result of Value Added Tax (VAT) hike and relaxing of import restriction of many items other than motor vehicles, department sources said.

Customs estimated revenue collection is to be made a reality amidst the substantial exposure to corruption of some officials in certain sections of the department.

This was highlighted in the International Monetary Fund (IMF) corruption diagnostic report which noted that “while corruption vulnerabilities appear to pervade Sri Lankan revenue administration, there appears to be little, if any, accountability, or consequence for such actions”.

Specific issues in revenue and expenditure policies and practices are exacerbated by weaknesses in the overall systems for accountability and integrity, reducing the probability that officials will be punished for failing to comply with rules and regulations, it added.

Cumbersome procedures that are open to abuse, along with collusion between officials create strong incentives in an environment of few, if any, consequences for a taxpayer to offer and/or for a revenue official to solicit a bribe.

Customs Department has been tainted with corruption allegations due to actions of some officials accused of under-valuation of goods, irregularities in inspections, aiding and abetting for smuggling, taking bribes and becoming rich overnight.

The Committee on Public Accounts (COPA) recently disclosed that there were many administrative shortcomings and irregularities at Sri Lanka Customs in recent times.