CMC GROWLS AT SHADY ‘EVENT ORGANISERS’ IN THE CITY

Identified as cheats and tax dodgers event-men face municipal ban

The Colombo Municipality is to issue a special circular banning event management companies from hosting any events within the Colombo city limits.

The circular will ensure that all events organised by event managers including plays and musicals that are held at selected locations will be banned in the city. The circular however does not ban the same events organised by individuals Treasurer K. D Chithrapala said the municipality had been cheated of more than Rs. 100 million in taxes by event management companies who had organised events in Colombo over the past five years. Chithrapala said investigations revealed that the 10 percent entertainment tax due to the municipality had not been paid by most companies.

officials said that some event managers had also committed unlawful acts such as charging a higher prices for tickets over the rates of tickets declared to the municipality, presenting lowpriced tickets to the CMC, covering the original price with stickers and charging a higher price, misinforming the about the number of tickets that would be issued and instead of tickets, issuing wrist bands to audiences.

While three leading event management companies were under investigation, the nonpayment of tax had prompted the CMC to take several events organisers to court

The treasurer said that event management companies had bypassed the payment of the 10 percent entertainment tax through such ruses. “Under such circumstances the Colombo Mayor and the CMC councilors have unanimously agreed to issue a circular banning event companies from organising events within the city limits,” he said.

Chithrapala also said that three leading event management companies were under investigation at the moment. The non-payment of tax due had prompted the CMC to take legal action against the organisers of several events held in Colombo previously.

“Legal action has also been taken against several companies that organised outdoor events in Colombo,” he said.

The treasurer said the decision to issue the circular had resulted in receiving threats and threatening phone calls in attempts to discourage him against issuing the circular.