Night Races: CMC Takes A Hit

 Monday, 24 December 2012

The Colombo Municipal Council (CMC) lost Rs. 2.9 million from the Colombo Night Races after Western Province Chief Minister Prassana Ranathunga gave instructions for the CMC not to charge a tax on the tickets sold for the event.

Under local laws when such an event or carnival is staged in the Colombo Municipal Council limits a tax is imposed on each ticket sold.

However Ranathunga had issued instructions to the CMC not to charge the tax on tickets sold for the night races at Galle Face recently.

The CMC had approved tickets to the value of at Rs. 29 million for the night races and stood to gain Rs. 2.9 million by way of a 10 percent tax on each ticket.

Deputy Mayor Titus Perera said that Ranathunga had issued similar instructions for the night races last year as well which resulted in the CMC losing out on much needed revenue.

A CMC official said that when tickets are approved by the CMC a seal is placed on each ticket printed for the event.

Separately a CMC official monitors the event to ensure extra tickets are not printed and sold without the knowledge of the CMC.

When The Sunday Leader contacted Chief Minister Prassana Ranathunga, he confirmed that instructions were given to exempt taxes from the tickets sold fpr the night races. He said that as the Chief Minister he had every right to take such a decision in the best interest of the city and the country