W. M. Mendis and Co. fails to pay tax arrears on deadline, face legal charges

Other five liquor companies settle arrears Rs.3Bn before Nov. 30, Excise says

By Kurulu Koojana Kariyakarawana   

Controversial liquor giant W.M.Mendis and Co. will face imminent legal action by the Department of Excise with revoking of its production license, having failed to settle a staggering tax arrears of Rs.5.5 billion to the government before the deadline on November 30th. The other top five booze makers have settled dues of Rs.3 billion last week, the Daily Mirror learns. 

Five of the six leading liquor manufacturers in Sri Lanka, out of which three belong to two former strong politicians had been warned by the Department of Excise with cancellation of production license for evading a huge tax arrears of Rs.8.5 billion.   

All six manufacturers faced many warnings since early this year by evading their alcohol tax to the government owing to many reasons.   

The questionable liquor manufacturer W.M. Mendis and Co., which has the lion share of Rs.5.5 billion of tax default, will face an inquiry followed by legal action and even up to the cancelation of its license soon, as per a senior Excise official.   

The Department of Excise following instructions of the Treasury issued a fresh warning by early November reminding six large scale liquor producing plants in the country to settle their tax arrears by month end.   

The Synergy Distilleries of Kalutara, Wayamba Distilleries of Kurunegala, Finland Distilleries, Hingurana Distilleries (Pvt) Ltd and Randenigala Distilleries Lanka (Pvt) Ltd along with W.M.Mendis and Co. Limited had been notified over a two years’ span for evading tax revenue to the government.   

Out of these six manufacturers Synergy Distilleries of Kalutara, Wayamba Distilleries of Kurunegala, Finland Distilleries, Hingurana Distilleries (Pvt) Ltd and Randenigala Distilleries Lanka (Pvt) Ltd had settled their dues last week to the Excise Department.   

A staff of several hundred belonging to the W.M.Mendis and Co. will become unemployed if their liquor licensed is revoked, thus putting the age old reputed company out of business.