The Tea Board will retain taxes payable to the Treasury by plantation companies since it has been found many companies have failed to pay taxes.

These taxes are payable by the companies since most of the plantation companies use State owned land. But currently they collect their sales proceeds from the Tea Board since sales are made through the Tea Board and thereafter evade taxes.

Plantation Industries Minister D. M. Jayaratne told The Island yesterday that despite strict instructions to plantation companies that they pay all arrears of taxes by June 30 only a few companies had complied."Therefore the Ministry was compelled to take this decision", he said.

"I have instructed plantation companies to pay taxes to the Treasury before June 30. I also warned them that I would seek the advice of the Attorney General on how the taxes could be collected and this decision was taken on his advice", the Minister further said.

Jayaratne said of the 23 companies, three belonged to the State and only nine companies had paid taxes amounting to Rs. 70 million.

He said the 23 companies had to pay Rs. 242 million by June 30.