By: Isuru Parakrama
October 15, Colombo (LNW): The government has pledged to take firm action to recover the unpaid value added tax (VAT) amounting to Rs. 3.5 billion owed by Arjun Aloysius, Director of W.M. Mendis and Company Ltd., who was recently sentenced to six months in prison for defaulting on the tax payment.
Cabinet Spokesman Vijitha Herath, speaking at the weekly briefing to announce Cabinet decisions, emphasised that while Aloysius’ imprisonment serves as a punishment for tax evasion, it does not address the immediate need to recover the outstanding funds.
“Although the six-month sentence has been imposed, the government still has not received the Rs. 3.5 billion,” Herath said.
He further outlined the government’s intention to pursue legal and financial measures to reclaim the significant tax sum, which is critical for the state’s revenue.
“We are committed to recovering this tax money and ensuring that this liability is met,” Herath added.
The case has garnered widespread attention due to the substantial amount involved and the high-profile nature of Aloysius, who has been entangled in several financial controversies in the past.
The defaulted VAT pertains to a period from 2016 to 2019, during which the company failed to fulfil its tax obligations.
