Two-week ultimatum to settle arrears Rs. 6.2Bn ends yesterday Pay arrears within three months or lose license - Excise Chief warns nine liquor companies

By Kurulu Koojana Kariyakarawana   

Considering the progress of payment, the Chief of Excise yesterday granted a three-month new payment schedule to the nine leading liquor manufacturing companies to settle its staggering tax arrears of Rs.6.2 billion and warned to revoke their license if they failed to pay the dues fully within the period, the Daily Mirror learns.   

 The two-week ultimatum granted by the Department of Excise to the nine top liquor manufacturing companies on June 30 ended yesterday and they faced the risk of getting their license suspended as previously announced by the Excise.   

Excise Commissioner General Saman Jayasinghe summoned the representatives of all the nine liquor companies to a special meeting held at the departmental head office in Rajagiriya yesterday morning, where the latter was briefed about the fresh orders.   

A senior Excise official told the Daily Mirror the companies were asked to pay their dues in full within a period of three months starting with effect from yesterday or to face the risk of losing their liquor manufacturing license for good.   

Those who had been summoned for the meeting represented the companies W. M. Mendis and Co., McCallum Breweries (Ceylon) Ltd, Kalutara Co-op Distilleries Socy Ltd, Wayamba Distilleries (Pvt) Ltd, Wayamba Spirits (Pvt) Ltd, Globe Blenders and Bottlers (Pvt) Ltd, Randenigala Distilleries Lanka (Pvt) Ltd, Synergy Distilleries (Pvt) Ltd and Randiya Distilleries (Pvt) Ltd.   

The Excise Chief had decided to grant a new payment schedule of three months to these companies to settle their debts considering the progress of payments the latter have already made. Likewise, some companies have been granted these conditions, some other companies have been asked to adhere to their ongoing court rulings of payment options.   

At the meeting, the companies have pointed out their inability to pay an outstanding amount of 300% arrears owing to the accumulation of interest but the Excise had been tough on its stance.   

The nine liquor companies owe the government taxes amounting to Rs.2.4 billion and Rs.3.7 billion as late payment fees totalling Rs.6.2 billion. There are altogether 23 liquor manufacturing companies in Sri Lanka that have registered with the Department of Excise.   

• The companies have pointed out their inability to pay an outstanding amount of 300% arrears owing to the accumulation of interest