MP Rauff Hakeem Demands "Super Tax" on Ethanol Industry Profits: Alleges Exorbitant Gains Unaddressed in Budget 2024

December 05, 2023

During the budget debate in Parliament, Rauff Hakeem, the leader of the Sri Lanka Muslim Congress (SLMC) and Member of Parliament, raised concerns over the significant profits being amassed by local companies in the ethanol industry. Hakeem, addressing the parliamentarians, highlighted a staggering profit margin and urged the government to impose a "super tax" on these companies.

Hakeem stated, "Almost 40 million liters of ethanol is being used in this country. Today, local companies don't pay duty. Their production cost is Rs. 150 per liter for ethanol. Whereas they are selling it in the market for Rs. 1500, they are making a profit of almost 10 times more." The SLMC leader pointed out that these companies are reportedly making substantial profits, as indicated by the Committee on Public Enterprises (COPE) reports.

Drawing attention to the alleged oversight in Budget 2024, Hakeem questioned the absence of any taxation measures targeting these lucrative profits in the ethanol industry. He emphasized the need for the government to take action and impose a "super tax" on these companies to ensure a fair distribution of wealth and prevent what he referred to as "super profits."