Colombo Mayor Vraie Cally Balthazaar has clarified reports claiming the Inland Revenue Department (IRD) had initiated legal action against the Colombo Municipal Council (CMC) over tax defaults.

In a statement shared on social media, the Mayor said the issue relates to delays in Value Added Tax (VAT) payments for the period between 2016 and 2020.

According to Balthazaar, the IRD has claimed outstanding taxes amounting to Rs. 483 million along with penalties totalling Rs. 551 million.

She said the liabilities had arisen due to late payment charges and the rejection of input tax claims after relevant information was not submitted within the required timeframe.

“We will continue discussions with the Inland Revenue Department regarding the settlement of these liabilities that arose due to delays prior to the new government assuming responsibility for the CMC,” she stated.

The Mayor further noted that all taxes due from the third quarter of 2025 onwards had been paid on time without delays or additional penalties. (Newswire)

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