Did VFS e-visa really fail to bring Government revenue?

A special audit report on the online visa issuance programme, where the work of the Department of Immigration and Emigration was outsourced to a private company last year, did not bring any revenue to the government, said sundaytimes.lk.

Tourists who qualified under the visa-fee waiver category ended up paying processing fees, thus not benefiting from the free service, it said quoting the report compiled by the Auditor General’s Department.

The report said that during its short period of operations handling the issuance of visas, GBS Technology Services & IVS Global ± FZCO and VFS VF Worldwide Holdings Ltd. could have earned at least USD 1,820,418 for the number of visa applications issued online between April 17, 2024, and August 2, 2024, due to the issuance of visas without charging visa fees for 98,401 visa applications for visa-fee waiver countries.

Newstube.lk contacted subject minister at the time Tiran Alles but he declined to comment, noting an ongoing court case with regard to the matter.

https://newstube.lk/news/23225-vfs

The website then contacted a senior official of the subject ministry, who, on condition of anonymity, rejected the claim that VFS e-visa did not bring any revenue to the government.

Explaining, he said the Department of Immigration and Emigration came under the Public Security Ministry in October 2022. At the time, Mobitel issued the 30-day e-visas. The government then obtained parliamentary approval to expand visa issuance under 12 categories.

It started on 16 April 2024, until which time visas were issued for 30 days and for SAARC countries only. Thirty-five US dollars were charged for SAARC country visas and for other countries 50 USD were levied for 30-day visas.

In the meantime, the government wanted to commence six-month, two-year, five-year and 10-year visa categories with immediate effect.

Since it could not be done by Mobitel, the need for a new methodology arose.

Before the department’s takeover by the Public Security ministry, a proposal by VFS was submitted through the Presidential Secretariat to the Tourism Ministry, which was subsequently referred to the Public Security Ministry.

The VFS proposal was studied in order to facilitate the parliament-approved 12 visa categories, and Mobitel as well as a Malaysian company submitted proposals.

Following a study of both, Mobitel’s proposal was ruled out since it was capable of issuing 30-day visas only.

The internationally-experienced VFS company’s proposal was approved following several rounds of talks by a committee appointed. With the receipt of cabinet approval, the VFS visa programme commenced on 16 April 2024.

Fees begin to be levied, instead of 30-day visas, at 75 USD for six months, at 200 USD for one year, at 300 USD for two years, at 500 USD for five years, at 1,000 USD for 10 years etc.

Accordingly,

• The government earned an additional income of 1.4 million USD under the new categories alone within 14 days since its commencement.

• In May, the additional income earned under the new categories alone was 1.5 million USD.

• In June, the additional income earned under the new categories alone was 1.5 million USD.

• In July, the additional income earned under the new categories alone was 1.2 million USD.

Taking up the petitions filed against the programme, the Supreme Court on 02 August 2024 issued an interim order suspending it.

The official said that the income to the treasury during three and a half months’ operation of the programme under the new categories alone was Rs. 1,632,300,000.

Any reduction in tourist arrivals due to the programme?

The official also rejected claims the VFS e-visa programme resulted in a reduction in tourist arrivals.

He said,

• 71,926 tourists arrived in May 2023.

• 113,676 tourists arrived in May 2024.

Which is a 62 percent increase during the month of May in the two years.

Also,

• 87,656 tourists arrived in June 2023.

• 149,982 tourists arrived in June 2024.

Which is a 54 percent increase during the month of June in the two years.

The official stressed the truth will prevail despite any insults and criticisms of the VFS e-visa programme by opponents.