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.