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Five leading liquor manufacturers to face licence cancellation by Nov 30th
Five leading liquor manufacturers including W. M. Mendis and Co. Limited will face imminent risk of losing its liquor production licence, if an accumulated tax arrears of Rs.8.5 billion is not settled by November 30th, the Daily Mirror learns.
The Department of Excise following instructions of the Treasury issued a fresh warning by early November reminding five large scale liquor producing plants in the country to settle their tax arrears by month end.
Synergy Distilleries of Kalutara, Wayamba Distilleries of Kurunegala, Finland Distilleries, Hingurana Distilleries (Pvt) Ltd and W. M. Mendis and Co. Limited along with Randenigala Distilleries Lanka (Pvt) Ltd had been notified over a two years’ span for evading tax revenue to the government.
Out of the six manufacturers Randenigala Distilleries Lanka (Pvt) Ltd. had recently settled the dues to the Excise Department and the remaining five producers had again been alerted by the authorities to pay the dues.
A senior Excise official told the Daily Mirror out of the total arrears of Rs.8.5 billion W. M. Mendis and Co. owes the largest dues of Rs.5.5 billion to the Treasury.
The licence to manufacture liquor will be suspended of the said companies if they failed to settle the dues by the end of the month and subsequent legal action would be taken against them, the official said.
Comments - 51
Comments - Five leading liquor manufacturers to face licence cancellation by Nov 30th
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manimaran Tuesday, 12 November 2024 09:29 PM
Where was Rs 1000 egg Seya, instead of collecting this tax? He was busy screwing the poor, old and vulnerable while his friend Mahendran, his son-in-law etc. was swindling the country and having a tamasaha.
13 134
Yohan Tuesday, 12 November 2024 09:34 PM
Too many restrictions, taxes and too much pressure will not only destroy these businesses but also will lead to loss of jobs. Current liars government does not have any plan and thinks these kinds of action will generate them revenue. Current governments main coalition jvp is famous for destroying any business that does not give them bribes and does not obey their unions. Walls and bata are such examples.
189 33
Tharmar K Tuesday, 12 November 2024 10:08 PM
Every country collects corporate tax, 3 years not paying tax? Try this even in USA or UK and you will know the outcome. Stop spewing stupid comments and attacking the government. They are only doing their duty.
11 196
Ranjit Tuesday, 12 November 2024 10:13 PM
Those distilleries instead of paying the taxes to the government was paying bribes to the ministers etc
5 147
KEEP GOING AFTER ALL WHO HAVE NOT PAID THEIR TAXES TOO. Tuesday, 12 November 2024 10:55 PM
YOHAN, THE LOSS OF JOBS IS THE RESPONSIBILITY OF THE PREVIOUS GOVT, INCLUDING THE UNELECTED FOX, WHO TROT ON HIS FEET INSTEAD OF RECOVERING THE UNPAID TAXES OF THESE MANUFACTURERS. ANURA/NPP SUCK UP TO NOBODY, BUSINESSES SHOULD KNOW TO PAY THEIR TAXES OR FACE THE CONSEQUENCES. HA!HA! THE OILING OF PALMS ERA IS GONE "THE BUCK STOPS WITH ANURA/NPP". LET THOSE WHO TOOK THE BRIBES PAY UP THE TAXES OUT OF THEIR ILLGOTTEN $$$. SELL THE ASSETS OF THE COMPANIES TO RECOVER THEIR TAXES.
1 27
Kirihāmi Tuesday, 12 November 2024 11:24 PM
AFAIU, the VAT is something between the consumer and the government, and the company is only the intermediary. That tax is outside their cost and profits. They just have to direct it to gov coffers. They have no right at all to keep it, so it’s a financial crime to delay or keep the particular tax money in there possession. I stand corrected if I'm wrong.
0 19
Deepthi Tuesday, 12 November 2024 11:46 PM
Paying existing taxes shouldn’t be a burden to a company. If taxes are too high, it should discussed and fixed by the government. Not paying taxes isn’t a solution for that
1 15
Ram P Wednesday, 13 November 2024 03:24 AM
Yohan, Please try to understand that we the customers have already paid that tax to the local liquor outlet who inturn has pid it to the supplier. So the manufacturers have already collected that tax. Imagine the interest at 8% on the huge amount due. By delaying payment these rascals make more money reinvesting the tax money. If not paid by the given date authorities must advertise these businesses for sale by tender
0 21
Don Wednesday, 13 November 2024 05:24 AM
Yohan buddy We don’t need this kind of rough companies in the business world. Let’s someone pays dues to government take that market share. Even a foreign company is ok.
0 19
Alisten Sydney Wednesday, 13 November 2024 08:36 AM
These are taxes due and not new taxes. The issue with implementation of current tax system and banking system work, all work for Politicians. If the money is invested by new government then you dont need to worry about individual business charging taxes. Ranil protected all these mafias and talking about experience. When he came as a industrial minister from his Uncle portfolio what experience he had , it was over 30 years. We also implement to collect the money from uni graduates specially doctors who study free and not pay back. They should pay back when the start working.
0 10
mnsmart Wednesday, 13 November 2024 08:41 AM
They have already made huge profits and tax is not 100% of their sales and they don't sell products on credit either....
0 11
JAY HEWAMANNA Wednesday, 13 November 2024 09:37 AM
How naive Yohan This is not about corporate taxes, they collected GST
0 10
Aela Wednesday, 13 November 2024 09:39 AM
What's the logic about restrictions and taxes being too much? 8.5 Billion taxes unpaid over a number of years and being protected by sleazy politicians!
0 10
Krish Wednesday, 13 November 2024 03:15 PM
These taxes are already paid by people. It is not a cost to the establishment. People are charged with price tax. So they are obligated to pay that tax portion back to government. Unless they are used that money as well.
0 4
Malcolm Anthony Wednesday, 13 November 2024 05:38 PM
Stupid comments Yohan.
0 5
M Fernando Sunday, 17 November 2024 01:19 AM
Don't take these comments by YOHAN seriously. It's not a real person but a badly written AI complete with terrible spelling, punctuation and sentence construction.
0 0
Aela Tuesday, 12 November 2024 09:41 PM
Excellent news!. What did Ranil with his so called experience do about such things?
9 129
Voter Wednesday, 13 November 2024 02:24 AM
Please note, because RR let out all his wealthy buddies off the Income Tax Net. Right now this government has the arduous task of collecting all this back log taxes at the cost of breaking the back of these companies.
0 10
Rasthiyadu RR Pin ketaya Wednesday, 13 November 2024 01:00 PM
Isa this how he enjoyed trips abroad?
0 2
Upul Tuesday, 12 November 2024 09:46 PM
Why didn’t these companies face this situation during previous governments?
6 126
Ranjith Wednesday, 13 November 2024 09:09 AM
Ask from Ranil and Mahinda
1 15
Nimal Costa Tuesday, 12 November 2024 11:45 PM
if the government brave enough band all the liquor products in SL. The reality is you cant run the country next day!
4 5
BanduXX Wednesday, 13 November 2024 12:17 AM
Surely these companies have misappropriated or used for other purposes, the tax which would have been received as part of sales price. Have this been shown as payments due in the annual reports or have the company secretaries accountants not done their job. Many questions arise and their connections to Ranil and Rajapakse govts which need probing.
1 7
Jude Wednesday, 13 November 2024 12:45 AM
Government take Over the manufacturing of liquor and jail The owners until they pay back taxes. Only in SL that you can evade paying taxes running to billions of rupees. The legal system is very weak. Government must have a mechanism to collect the taxes, for a instance in the province of Ontario in Canada the province owned the sales outlet that sell alcohol except for some remote areas. This way government never have to worry about collecting the taxes. Government of Ontario already collected the taxes.
2 3
Ranjan Wednesday, 13 November 2024 12:47 AM
This is the outcome of the so called experinced group of goventment politicians led by RW. Well done Mr RW
1 12
Ex Tax Wednesday, 13 November 2024 01:01 AM
Businesses getting into tax arrears for various reasons. The best is to have an arrangement to collect these arrears from a larger portion of the current revenue
0 0
Ranga K Wednesday, 13 November 2024 09:57 AM
What a silly argument! Tax arrears in this context don't come from the manufacturer's pocket; these funds are collected from consumers on behalf of the government. If a business isn’t remitting this, it’s effectively withholding government and taxpayers’ money. Such behaviour needs to be addressed promptly, as it reflects a misuse of collected funds, not an expense burden on the business itself.
0 10
Shera Wednesday, 13 November 2024 03:04 AM
Less alcohol the better considering the addiction epidemic in Sri Lanka.
2 4
BnW Wednesday, 13 November 2024 04:08 AM
If suspension of liquor licence happens, the production stops. Then what? Guess the government has an alternative way to continue production and collect taxes on current sales and collect past dues. Could it be that Mendis was trying to recover frozen money on bond deal by way of tax evasion OR have they bribed revenue collection rouges OR both? Except few businesses, this is how lankan businesses operate. Luxury life by stealing.
0 5
H.A.Sky Wednesday, 13 November 2024 04:23 AM
Excellent News
1 5
Tony Pereira Wednesday, 13 November 2024 04:23 AM
the illicit trade is ready is ready to supply the shortfall!!
1 2
Grace Wednesday, 13 November 2024 04:29 AM
What was the self-styled Sri Lanka's Hitler doing without collecting the huge amounts of arrears of taxes?.
0 6
Vadivelu Yogaratnam Wednesday, 13 November 2024 04:53 AM
I think cancellation of licence is bad idea instead nationalize let government get the revenue, all these because of Rajapaksa regime got the bribe let these cooperative thief's to escape.
1 5
Joahua Wednesday, 13 November 2024 06:29 AM
Hope these tax dodgers who thrived without paying taxes under Ranil Seeya, will be taught a good lesson by the new government. Experienced seeya was nothing but a liar
0 7
Nihal S Wednesday, 13 November 2024 07:04 AM
How did the evade tax payments to date? Who was behind to protect them? Find the loophole
0 10
joshua Wednesday, 13 November 2024 09:36 AM
Ranil and MR seeyas protected them.
0 5
How many of them are Rajapassas Blue eyed boys? Wednesday, 13 November 2024 07:56 AM
"They had been notified over a two years’ span for evading tax revenue to the government." Authorities who are supposed to collect tax, are doing a kushy job of sending reminders and keeping a copy of the reminding letter in the file. Everybody happy. You all are paid a thumping salary to keep a copy of the letter in the file. JOB DONE. How many of them are Rajapassas Blue eyed boys?
0 8
How many of them are Rajapassas Blue eyed boys? Wednesday, 13 November 2024 07:56 AM
"They had been notified over a two years’ span for evading tax revenue to the government." Authorities who are supposed to collect tax, are doing a kushy job of sending reminders and keeping a copy of the reminding letter in the file. Everybody happy. You all are paid a thumping salary to keep a copy of the letter in the file. JOB DONE. How many of them are Rajapassas Blue eyed boys?
0 4
Ranjith Wednesday, 13 November 2024 07:58 AM
Ranil protected the Rajapakses , Distilleries and other businesses owned by his henchmen this lead the country to more corruption and destroyed our economy. Ranil destroyed UNP.
0 8
RuwanL Wednesday, 13 November 2024 08:15 AM
Not a good idea to close liquor manufacturers as it can be a good source of income for the government. Take action against the owners and have a strategic plan to ensure they pay without defaulting. Take over fixed assets as assurance until they pay up!
2 5
Ranga Wednesday, 13 November 2024 08:21 AM
Close down W. M. Mendis and auction the asset
1 8
Ravi Wednesday, 13 November 2024 08:22 AM
Simple solution, Put these companies into receivership, and sell them to the highest bidder and recover the funds. There will be plenty of people to buy them and make sure all the new owners pay their correct dues on time.
0 11
Seeya Wednesday, 13 November 2024 08:54 AM
Wasnt it a case filed during Ranil's time? If normal people can pay taxes why cant these big companies making massive profits pay the taxes? It is because of these corrupt companies that we have to pay massive taxes to the government.
1 4
Rashmi Wednesday, 13 November 2024 08:54 AM
If Seeya got elected on September 21st, then none of these actions would have taken. Still this country is left with some "Pina".
1 6
Cecil Hedwige Wednesday, 13 November 2024 08:58 AM
Very Good. news. when the govt cancels these liquor licences from where are the boozers going to get their daily tots. These people will have to depend on moon shine or well known Kassippu drink.
1 4
Lalith Wednesday, 13 November 2024 09:20 AM
What was the previous government doing up to now. Did they take bribe and kept silent. If the companies stop production of liquar then people will start taking illicit stuff. It may create sevveier health issues again the problem is for government
2 3
Labby Wednesday, 13 November 2024 09:21 AM
This really is great news but, is it ethical to make such a publication on the eve of an important election? We even saw that Wasantha guy from the aragalaya make a statement to media cameras criticising the then government for signing an agreement regarding the IMF on the night before the presidential election. This played heavily on the minds the voters. Wither election laws.
4 4
BanduXX Wednesday, 13 November 2024 11:03 AM
It is unlikely that a day or two before election date, that this will play heavily on the minds the voters as by now 99.9% voters have decided.
1 1
Not to vote Wednesday, 13 November 2024 04:58 PM
If people think that referaining from transferring the tax collected from consumers over 3 years is ethical, even after several followups is ethical, then I don't see anything unethical about bringing the subject couple of days before the elections. In fact it is ethical to do so, because it will give the people the guidance on to whom NOT TO VOTE.
1 0
Ajantha Jayaweera Wednesday, 13 November 2024 11:11 AM
It's an interesting situation. Alcohol is a drug. So alcohol manufacturers are drug dealers. The Government wants it's cut. Cheers!
3 1
Subramaniam Tuesday, 19 November 2024 07:13 PM
75% of the price the consumer pays is taxes due to the government. Therefore paying the taxes promptly will produce cashflow issues for the company. If they sell products on credit to their bigger customers, they will be dependent on their customers paying up before they can pay the government given the high tax take. They will also need working capital to operate. In Sri Lanka most companies do not pay their invoices on time this means that the distilleries or for that matter any other company cannot pay taxes on time. For most companies it is just the VAT liability they have to pay whereas distilleries have to pay 75% plus in taxes and the salaries of their employees. Distillers demanding payment before or on delivery will create cashflow issues for the buyer and possibly loose business as others would offer credit. The Government should not be harsh on these cash cows but work with them to come up with a plan to collect the dues without harming the business.
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