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Rs 1.8Bn tax in arrears from liquor manufacturers, Champika lashes out
- Expresses strong displeasure over the failure to act on recommendations given by the committee
By Ajith Siriwardana and Yohan Perera
The Excise Department had failed to collect the total tax amount of Rs. 1.8 billion in arrears up to June 15, 2024, from last year from the relevant liquor manufacturers despite recommendations from the Committee on Ways and Means, Committee Chairman MP Patali Champika Ranawaka said.
The Committee on Ways and Means has expressed its strong displeasure over the failure to act on the recommendations given by the committee. The Excise Department stated that the Finance Ministry is yet to respond to its letter regarding the measures to be taken regarding the contradictions between the agreements for the collection of excise duty in previous years and the recommendations given by the committee.
The matter was discussed when the Committee on Ways and Means met at the Parliament premises under the chairmanship of the MP Patali Champika Ranawaka.
It was revealed that the arrears of taxes of W. M. Mendis Company is 1,659 million rupees, Hingurana Distilleries 102 million rupees, Synergy Company 37 million rupees and Wayamba Distilleries 79 million rupees.
It was also revealed before the committee that the total arrears of taxes to be collected from the year 2023 to June 15, 2024, is 1.8 billion rupees.
It was revealed that the payment agreements made by the Excise Department with companies other than W.M. Mendis have now become inactive.
The Chair said that the Commissioner General of Excise has failed to take proper action in this regard and despite this, the Commissioner is avoiding the Committee on Ways and Means.
The committee chair further pointed out that the Excise Department is ignoring the recommendations of the Committee, and it is disrespectful to the Parliament and the Committee.
The chair directed the secretary to the committee to send a written notice to the Ministry of Finance to temporarily suspend the licences of alcohol production of companies that do not pay arrears of excise duty for the year 2023.
The committee also expressed its displeasure over the excise department adopting a lenient policy on liquor manufacturers who did not pay due excise duty while levying taxes on the public.
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