Govt. to grant distilling license through unlawful channels – MP slams Excise

By Kurulu Koojana Kariyakarawana  

An attempt by the government to grant a license for a new liquor distillery through unlawful channels came under severe criticism by MP Buddhika Pathirana in the House, who demanded State Minister of finance Ajith Nivard Cabraal to conduct an immediate inquiry on the matter.   

Parliamentarian Pathirana raised an oral question in the House asking to expose any attempt by the Department of Excise to grant a new liquor manufacturing license to an owner of a distillery without following the 
appropriate guidelines.   

He said currently there are 25 liquor manufacturing license in effect and out of these five large scale license holders would contribute to 95 percent of the state’s tax revenue, whereas the remaining 20 license holders would generate a five percent of the tax revenue.   

He said moves are underway to grant a new liquor license to one of the said small scale liquor manufacturing entrepreneurs, who would not contribute much to the state’s tax revenue and who also came with a history of dodging tax revenue for years.   

MP Pathirana said the new license was said to be granted to a regular liquor manufacturing plant under the guise of granting it to setup a local wine brewing plant.   

Usually a sum of Rs.3,200 is payable as tax revenue from a liter of hard liquor whereas a sum of Rs.900 is payable from a liter of wine. So the prospective brewer is able to dodge the payment of a sum of Rs.2,300 per litre as tax revenue to the state, when he commences distilling hard liquor with his fraudulently obtained Excise license issued for brewing of wine.   

The MP further said that the Excise Department is going to grant the license by circumventing the basic guidelines for issuing such licenses, like not doing a proper check up on the brewery premises and its environmental aspects as well as not publicizing the issuance of license through print media beforehand to obtain any public feedback.   
State Minister for Money, Capital Market and State Enterprise Reforms Ajith Nivard Cabraal agreed to look into the matter and do a necessary inquiry.