The Committee on Public Accounts (COPA) has revealed that more than Rs. 4 billion in assessment tax arrears remain outstanding within the Colombo Municipal Council (CMC) area.

This revelation was made when officials from the Colombo Municipal Council were summoned before the COPA Committee recently.

During the proceedings, COPA Chairman MP Kabir Hashim raised concerns regarding the persistent arrears, stating:

“One of the recommendations made last February noted that arrears amounting to Rs. 610 million were due from the Fort Division alone. At that time, the Municipal Council agreed to increase efforts to recover these arrears. However, by June, only Rs. 53 million had been collected. I am not sure if that amount has increased since.”

He further stated that the total arrears now stand at around Rs. 4 billion across all 47 divisions, and that the committee had requested a detailed report identifying the divisions involved, the age of the arrears, and which ones could be recovered.

Deputy Municipal Treasurer Nandana Rajapaksha explained that recovery in the Fort Division was being carried out under the Municipal Council Ordinance, including property seizures for defaulting taxpayers.

“There were Rs. 610 million in arrears in the Fort Division, with 3,747 defaulting properties. After issuing demand notices, 94 properties were found non-existent, and seizure notices were issued to 2,914 properties. Of these, 840 properties owed more than Rs. 100,000, totaling Rs. 533 million, from which Rs. 108 million was collected. Another Rs. 39 million was collected from 2,907 smaller defaulters. Thus, a total of Rs. 148 million has been collected so far,” he said.

Colombo Mayor Vraie Cally Balthazar assured the Committee that necessary measures would be taken swiftly to address and resolve the outstanding tax issues.