The Finance Ministry will take several steps to strengthen the Customs Department in a bid to increase revenue, Finance and Mass Media Minister Mangala Samaraweera said.
He said today, there is a huge mafia operating the Customs and they are even stronger than the LTTE. “This is why it was earlier decided to appoint a retired personal from the Forces (Navy) to head the Customs as seen in many other government institutions.”
Speaking at a special press conference at the Finance Ministry yesterday, the Minister said later the Cabinet decided to reinstate, P. S. M. Charles who held the post of Director General of the Customs until last week.
He said that Charles was an honest individual and an ‘Iron lady’ and this is why he decided to appoint her as the head of a special Revenue Collection Unit at the Finance Ministry.
Under that unit Charles would have been in charge of not only the Customs but also the revenue units of the Exercise and Inland Revenue Departments as well. “However the Finance Ministry will now go ahead with setting up this unit,” he said.
The Minister said that he has always bettered the Ministries he was in charge like Sri Lank Telecom, Media, Postal Department and the UDA. “I wanted to do something similar to the Customs as it was one of the highest income generators to the government.”
In 2015 the revenue generated from Customs was Rs.788 billion and it increased to Rs. 831 in 2016. “We set up a revenue target of Rs.one trillion for 2018 but only Rs. 921 billion was achieved”.
The Minister said he feels that there should be more detection of smuggling of narcotics at the Customs and a special marine division would be set up soon to increase surveillance. “Customs DG, Charles too had made a request in this regard.”
Samaraweera attributed the loss of the targeted revenue by 13 percent to ‘leakages’. “Measures should be taken to close them.” He also said that there is a huge leakage from arecanut and pepper re-exports and exporters are using the FTA to re export to India without the stipulated value addition. “In future we will insist that those who re export should have their own warehouse facilities to add value locally.”
Meanwhile Director General of Customs P. S. M. Charles said that one of the main reasons for the leakages that lead to negatively affect the Customs revenue is the Customs Ordinance which was spelled out in 1887. “This has to change soon.”
She also said that more emphasis should be gives on Custom Automation which would also help detect fraud.
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