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The Department of Excise being the sole competent authority in issuing and renewing licenses to sell liquor in Sri Lanka, has decided to go ahead with the renewal of licenses for 2025 sans a tax clearance certificate,, the Daily Mirror learns.
The Excise Department in early December last year made a written request to the Inland Revenue Department to issue the tax clearance certificates before December 31st to continue the smooth operation of renewing the licenses for over 4, 500 liquor selling places before the arrival of 2025. The need of a tax clearance certificate is never a mandatory document to renew a liquor license under the Excise Ordinance but the customary practice has been followed in a helping mechanism to regulate the habit of liquor sellers paying their due income taxes on time.
When contacted a senior Excise official told the Daily Mirror yesterday that the second written reminder has been sent to the IRD early this month to issue tax clearance certificates before January 15th. Since this request has not been adhered to by yesterday, the Excise Department has decided to go ahead and renew the liquor license without considering the tax clearance certificates anymore, the official said. The official said they cannot let the sales drop in 2025 resulting in a loss of revenue to the state due to the outlets remaining shut due to the licenses not being renewed
The official further said that out of over 4, 500 total liquor licenses in the country including both wine stores and liquor-consuming places like bars, restaurants and hotels 3, 500 had been renewed thus far. Meanwhile, a spokesperson from the Sri Lanka Liquor Licensee’s Association told Daily Mirror yesterday that there are about 1,500 licensed retail liquor vendors registered with them and only about 200 members have received the tax clearance certificate.