Probe sought into alleged unpaid hotel taxes in Pasikudah

Batticaloa District TNA MP Shanakiyan Rasamanickam yesterday called for an immediate investigation into allegations that hotels operating in the Pasikudah tourism zone have failed to pay the statutory one percent tax due to the local authority under the Pradeshiya Sabha Act for…

Batticaloa District TNA MP Shanakiyan Rasamanickam yesterday called for an immediate investigation into allegations that hotels operating in the Pasikudah tourism zone have failed to pay the statutory one percent tax due to the local authority under the Pradeshiya Sabha Act for several years. Raising the issue in Parliament, Rasamanickam said 17 hotels, currently operate in the Pasikudah tourism area, and, while making payments to the Sri Lanka Tourism Development Authority (SLTDA), had allegedly failed to meet their mandatory tax obligations to the local council. He said any failure to collect the revenue represented a significant loss of public funds that could have been utilised for local infrastructure development, sanitation, public services and community welfare programmes. The MP said the issue highlighted the wider neglect of tourism development in the Northern and Eastern Provinces, despite their considerable tourism potential, noting that adequate budgetary allocations had not been made for the sector since 2018. He said several hotel properties in Pasikudah had been leased to major investors, under the post-war tourism development programme launched during the tenure of former Economic Development Minister Basil Rajapaksa, and stressed that investors must be held responsible for fulfilling all legal and tax obligations. Rasamanickam also alleged that an SLTDA official, identified as Mahir, who had served at the Pasikudah office for nearly 12 years, had failed to cooperate with requests for information and had acted in the interests of certain hotel operators. He said the allegations required an independent inquiry. The MP urged the Ministry of Tourism, SLTDA, Ministry of Local Government, the Auditor General and other relevant authorities to conduct a comprehensive investigation, recover any outstanding taxes and take legal action against those found responsible for violating the law.