Chairman of the Committee on Public Finance (COPF), MP Harsha de Silva, has issued a directive instructing the Ministry of Finance to impose income tax on companies that have profited immensely from what has been termed the 'midnight gazette.' The directive aims to compensate for the loss of revenue and prevent such incidents from occurring in the future.

The 'midnight gazette' refers to sudden and often unexpected policy changes or announcements made by governments, typically at unconventional hours, which can result in certain businesses taking advantage of the situation to maximize their profits.

The directive from COPF comes in the wake of a revealing revelation based on Customs data, which indicates that specific companies, which typically imported 2,000 metric tons (MT) of sugar on a monthly basis, substantially increased their imports to 10,000 MT just before a tax hike of 200-fold. The tax rate surged from a mere 25 cents to Rs. 50, a development that has raised concerns about potential exploitation of the system.

MP Harsha de Silva voiced his strong disapproval of such manipulation, stating, "This kind of manipulation can’t be ignored. Specific companies allegedly exploited the system, reaping massive gains." He emphasized the importance of eliminating 'midnight gazettes' in alignment with recommendations from the International Monetary Fund (IMF).

The directive to impose income tax on companies that profited from the 'midnight gazette' is a proactive measure to not only recover lost revenue but also to discourage such practices in the future. By holding companies accountable for their actions and ensuring that they contribute their fair share, the COPF aims to maintain fairness and transparency in the business environment.