Despite the Ceylon Petroleum Corporation’s (CPC) implementation of Value Added Tax (VAT) on discounts for Petroleum Dealers, Vice President Kusum Sandanayaka of the Sri Lanka Petroleum Private Tank Owners’ Association has affirmed their commitment to ensuring uninterrupted fuel distribution until April 20.
Addressing the media, Sandanayaka highlighted the burden faced by Petroleum Dealers due to the imposition of an 18 percent VAT on the CPC’s three percent discount. While expressing their willingness to comply with VAT regulations, he emphasized the illegality of imposing VAT on this discount. He noted efforts to raise this concern with relevant authorities, including the Inland Revenue Department, Finance Ministry, and CPC, but lamented the lack of concessions received over three months.
Consequently, the association has decided to notify all members about this issue. All fuel distributors, including CPC, Sinopac, IOC, and RM Parks (Private) Limited, convened to address the matter recently.
“Unanimously, they opted for a trade union action starting yesterday. However, we, as a responsible association, will ensure uninterrupted fuel distribution until April 20 to avoid inconveniencing consumers. If the CPC fails to address our concerns, we will escalate to a union action,” Sandanayaka stated.
He further emphasized that paying VAT without profit would jeopardize 60 percent of refueling centers nationwide.
