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Customs seize crude palm oil consignment suspecting tax evasion
View(s):The Customs launched an investigation into the import of 24 containers of crude palm oil on suspicion of trying to evade taxes, but the importer has challenged the detention in courts. A senior Customs official said this particular stock of crude oil was only suitable for industrial purposes and not for human consumption.
Customs investigations have revealed that the businessman in question had allegedly imported about 20,000 metric tonnes of crude palm oil in 900 containers from 2012. And this particular stock imported from Malaysia between March 29 and April 7, had been refined at the importer’s mill in Colombo and sold to wholesale coconut oil sellers in Colombo and other areas in the country. They also found there was no brand name for these products.
In a bid to pay a lower tariff, the businessman is alleged to have classified the stocks as “Crude Palm Fatty Acids.” Customs officials claimed the scam had resulted a loss in revenue of Rs.1 billion to the State. Customs has now informed the Ministry of Health and the Consumer Affairs Authority (CAA) that such harmful palm oil was in the market.
However, the company has filed a case against the Customs for “unlawfully detaining” the containers and sought the release of the consignment.