26 December 2024 11:05 am Views - 46
By Kurulu Koojana Kariyakarawana
Making a fresh approach towards the stagnating tax issue of staggering Rs.5.8 billion defaulted by the local liquor giant W. M. Mendis and Co. Ltd. the newly appointed Excise Chief has proposed a way-out to settle 50% of the arrears to reactivate its suspended production licence, the Daily Mirror learns.
Excise proposes settlement of 50% defaulted tax to restore production licence of W. M. Mendis and Co.
Termed as the most practical means to regain massive tax arrears to the state coffers and also to safeguard livelihoods of 600 employees and another 1, 500 dependents, Excise Commissioner General U. L. Udaya Kumara Perera said a fresh proposal was made to the infamous liquor manufacturer to be back on track.
When contacted about the measures to be taken by the Department of Excise against the tax defaulting liquor giant, Excise chief said the fresh proposal was made to settle 50% of the arrears amounting to Rs.3 billion to be paid to get their suspended licence reactivated in future.
“I proposed to the remaining Director Board of W. M. Mendis and Co. Ltd. last week that half of their defaulted tax arrears to the government amounting to Rs.5.8 billion be settled and then the suspended licence would be reactivated,” the ECG said.
“The W. M. Mendis and Co. Ltd. has three Excise manufacturing licences issued to their facilities at Welisara, Moragalla and Kalkuda. The Kalkuda facility is a spirit manufacturing plant whereas the other two are bottling plants.
We have to look at the livelihood of about 600 workers of this company and their dependents and the most practical and compassionate way of regaining the economy is to grant them an opportunity to recommence their business, whilst settling the loss incurred by the government,” Udaya Kumara Perera said.
Asked whether a timeframe is granted to settle 50% of the tax arrears the ECG said it is now upto the company to come up with a proposal stating their ability to repay the amount within a stipulated period.
“Once they have settled Rs.3 billion, their suspended production licence will be reactivated and will go for a scheme to renew it monthly on the condition of settling their new production taxes,” he further said.