If USD 30Mn revenue lost due to Excise Dept’s incompetency is averted

• Govt, loses about Rs.400 million per day as revenue from Excise tax due to the incompetence of the department in properly collecting the money
• A group of liquor vendors were trying to create a monopoly in the market by objecting to the department’s decision to issue new liquor licenses to leading supermarket chains

By Kurulu Koojana Kariyakarawana  

Sri Lanka Liquor Licensee’s Association (SLLLA) yesterday hit back at the governing body Department of Excise saying the country could purchase a fuel shipment every month from a massive sum of revenue lost to the government monthly over the incompetency of the latter.   

Speaking to the Daily Mirror President SLLLA Ajith Udugama said the government is losing about Rs.400 million per day as revenue from Excise tax due to the incompetence of the department in properly collecting the money and also due to it being highly corrupt.  Slandering of mud between the SLLLA and the Department of Excise began a few weeks ago when the former accused the department of being corrupt to the core and alleging that a sum of Rs.400 million was lost every day from its tax revenue, which is equivalent to USD 1 million.   
However, the issue deepened when the Excise Commissioner General M. J. Gunasiri convened a press conference last week accusing the SLLLA saying a group of organised liquor vendors were trying to create a monopoly in the market by objecting to the department’s decision to issue new liquor licenses to leading supermarket chains.  

Ajith Udugama refuting these claims said the Excise law itself had prevented any monopoly being created in an area as a maximum of two liquor licenses are allowed per person in one district and a total of three in the whole country.  
“There are about five leading supermarket chains in the country and each one has about dozens of branches in one district, out of which at least six of these branches have permits to sell liquor. He said that is alone is a major violation of the Excise Ordinance”.  

He said most of all the adulterated toddy industry has created havoc in the country’s liquor industry and a heavy impact on its tax income, which is not collected by the Excise.  

“With a loss of Rs.400 million tax revenue per day (about USD 1 million) the government is losing about USD 30 million per month, with which the country could purchase an oil or gas shipment, which is about USD 30 to 40 million,” he further said.  

Meanwhile, SLLLA Spokesman Dallas Fernando said their association has filled about six petitions against the Excise Department with the Court of Appeal in the past two years.     

• Gunasiri convened a press conference last week accusing the SLLLA saying a group of organised liquor vendors were trying to create a monopoly in the market by objecting to the department’s decision to issue new liquor licenses to leading supermarket