Dealers say running at loss


Petroleum dealers complained that the new tax imposed on Ceylon Petroleum Corporation (CPC)-run filling stations on 1 July has forced them to incur losses that could lead to the collapse of their businesses.

Petroleum Dealers’ Association (PDA) Co-Secretary Kapila Naotunna said the tax is 45 per cent of the commission they receive.

According to him, the country has approximately 250 CPC-run fuel stations and approximately 900 dealer-owned category fuel stations. He said they receive about three per cent of the commission they are required to receive from the revenue, and they now have to pay a tax on that as well.

The CPC-run fuel stations are required to pay approximately 0.25 per cent of the commission’s rental, in addition to 45 per cent of the commission’s tax.

He said there are two Court cases in this connection, and that they will make submissions in this regard.

By Thameenah Razeek