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| Sunday, 13 October 2002 |
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| News Business Features Editorial
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Crack-down on entertainment tax defaulters by the CMC by Don Asoka Wijewardena The Colombo Municipal Council (CMC) will strengthen its raids on organisations and individuals engaged in the entertainment industry and conduct musical shows and other events within the city without its approval and non-payment of the "entertainment tax". which had resulted in a big loss to its revenue." This was disclosed by M.Azath Sally, Colombo Deputy Mayor,to the "Sunday Observer". The Deputy Mayor pointed out that most show businessmen had been flouting the CMC law for many years without paying the entertainment tax and,in a spate of recent raids,a number of individuals were rounded up. Legal action would be taken against offenders guilty of defrauding the council. " When the UNF government returned to power,an overdraft amounting to Rs 487 million was left to be settled by the CMC,but within a few months it was able to maintain a credit balance.About Rs 1 million was collected as entertainment tax from defaulters in recent months," the Deputy Mayor said. On a directive of the Deputy Mayor, the Municipal Treasurer's department with the assistance of the Flying Squad division conducted several inspections and raids on various organisations and individuals who had organised variety shows at certain leading schools without obtaining the prior approval and non-payment of the entertainment tax to the CMC. As a result, a considerable sum was recovered from the defaulters who will have to face legal action. Entertainment tax is payable to the CMC on all variety shows conducted within the Colombo city by sale of tickets with prior approval and, licences are issued by the council on the payment of the entertainment tax to hold such shows,with the council's frank affixed on all tickets on sale. |
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