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Last Updated : 2024-05-27 13:00:00
3 July 2023 09:24 pm - 15 - {{hitsCtrl.values.hits}}
Nine leading liquor manufacturing companies in Sri Lanka will get their license suspended, if they fail to settle a massive tax arrears of Rs.6.2 billion within a 14-day ultimatum granted by the Department of Excise with effect from last week, the Daily Mirror learns.
Owing to the tremendous pressure mounted on them with continuous criticism by many stakeholders including the political authority, for not collecting the due taxes on time, the Department of Excise has issued a 14-day ultimatum for top nine liquor producers in the country to settle their arrears up to Rs.6.2 billion or face the threat of getting their license suspended.
A senior Excise official exclusively told the Daily Mirror that they were left with no other option but to issue this ultimatum to collect this staggering amount of tax arrears within such a short period, although one could interpret it as ‘unrealistic’.
According to latest figures and out of the total arrears money of Rs.6.2 billion, a sum of Rs.2.5 billion has been calculated as the tax arrears and the balance of Rs.3.8 as the late payment fees for the aforesaid tax arrears.
The arrears of Excise taxes and late payment fees by some of the said nine companies would date back to 26 years (from 1997 to 2023), while some companies have defaulted its tax payments for the past couple of years.
The controversial liquor manufacturer W. M. Mendis and Co. which got its name tangled with the infamous ‘Bond Scam’ stays in the top for not settling its arrears amounting to Rs.3.4 billion out of the total due moneys.
Also, eight other companies including three liquor manufacturing companies in ‘Wayamba’ belonging to a prominent government politician, Kalutara Distilleries, McCallum breweries and three other companies are in arrears of this payment.
When contacted Excise Spokesperson Additional Commissioner General Kapila Kumarasinghe told the Daily Mirror that these nine companies are currently either going through court cases for defaulting their payments or they have come to terms with the Department of Excise to pay their arrears as much as possible. (Kurulu Koojana Kariyakarawana)
Sam Silva Monday, 03 July 2023 10:27 PM
How unjustified this is. IRD will go after us if we owe few hundreds or couple of thousands in arrears for couple of years . Like this How many owe to ird.
Truth Monday, 03 July 2023 10:33 PM
Our Mobile phone and landline services are disconnected for a few days delay. Credit cards are inactivated for pending payments. Nowhere liquor is sold on credit. Though VAT is a tax on gross profit for trading activities IRD considers it as a Tax paid by the consumer and it's a serious offence if the service provider delays remittance. Looks like the Department was under the influence of liquor. What else can we say.
Milinda Monday, 03 July 2023 10:39 PM
It is pretty obvious that unscrupulous corrupt politicians are involved in this racket.How about the politicians who are doing this business with out a licence?
If the revernue was available could the debt default been avoided Monday, 03 July 2023 11:15 PM
What is happening to all the taxed profits in the companies. Where is all the money going and why is it taking so long to collect it. Any company that goes bust will quickly be replaced any another, so taking a stick to beat out the needed money out of them is the only way now.
Tissa Fernando Tuesday, 04 July 2023 12:43 AM
These companies have already collected these taxes from drinking public. Their directors and owners are probably getting paid in millions using this tax money. Definitely, powerful politicians are guarding their back.
Ram Tuesday, 04 July 2023 02:37 AM
These Companies are owned by supporters of both the government and opposition. They dole out money to all political parties and no party will have the guts to sell their assets and recover the taxes due. If it was me, my assets will be sold to recover taxes
Reformist Tuesday, 04 July 2023 03:01 AM
Here we go again! Chasing companies struggling with sky rocket alcohol price increases and significant reduction in sales. But they they take linear position to one's opened by a politician. What about the staggering losses from the bond scam? Anyone responsible for that?
Sarath Tuesday, 04 July 2023 06:06 AM
Good. It woukd be better if the license is cancelled and the directors are barred from holding office in liquor companies again for life.
Farieze Tuesday, 04 July 2023 06:17 AM
What you do all these years? If poor people not settled their electricity bill on time you cit off the supply. Weak excise department sleeping or getting kick backs for
Nirmal Tuesday, 04 July 2023 07:26 AM
SL seems to be picking up easy targets always and it is always about alcohol. Even predominately Muslim countries in Asia has a different approach when it comes to pricing/selling beer etc. On one hand, we talk big on promoting tourism and tourists don't have a place to have a beer for a reasonable police. Have these people traveled at least to some Asian countries and seen how they do things there. If SL is so high on moral values, why are we seeing so many frauds, corrupt activities and murders?
Lion Tuesday, 04 July 2023 09:05 AM
Suspension, it never happens in Srilanka since the owners are best pals of politicians and some of them are the kingpins of the industry. Case in point is Johnny from Kurunegala
Dhusana Tuesday, 04 July 2023 11:26 AM
Why are the Authorities dragging their feet in collecting the tax due to the State ? Do they enjoy hidden benefits from the Defaulters ? The Finance Minister and two State Ministers must wake up.
sam Tuesday, 04 July 2023 01:00 PM
Johnny must be topping the list
Ratnasiri Dalugala Tuesday, 04 July 2023 03:09 PM
Renting prevented all this, government got their revenue and the risk was borne by the supplier, plus the consumer got their liquor at an affordable price or free.
Gamini Tuesday, 04 July 2023 03:18 PM
Does this apply to W M Mendis
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