ECONOMYNEXT – Sri Lanka has suspended the licenses of five distilleries over non-payment of taxes state minister for finance Ranjith Siyambalapitiya said.
The firms owed 6.7 billion rupees including fines, he said.
“Five liquor manufacturing companies who failed to pay taxes have been informed in writing by the Commissioner General of the Excise Department that their liquor licences have been suspended,” Siyambalapitiya told parliament replying opposition leader Sajith Premadasa Tuesday
The five companies are: Royal Ceylon Distilleries; W M Mendis and Co Limited, Finnland Distilleries Corporation (Pvt) Limited (formally known as Randiya Distilleries (Pvt) Limited), Synergy Distilleries (Pvt) Ltd, and Randenigala Distilleries Lanka (Pvt) Ltd.
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Siyambalapitiya said this was the first time that the government withheld the licence of liquor manufacturers.
The total taxes due the government from these companies was 2,715 million rupees, the minister said, adding that delays in payment incurred a 3 percent fee monthly, which amounted to 4,005 million.
“In total these companies have to pay the government 6,721 million rupees.”
Some alcohol firms were defrauding the state by selling arrack with fake revenue stickers, legislators have charged.
Minister Siyambalapitiya has also revealed that bottles with fake stickers were found.
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“There were appeals from the companies and practical issues in recovering the entire amount in one payment. If we close down these companies, we can’t recover the tax revenue due to the government.
“So we are working on setting up payment plans with them which they have entered into agreements with the Excise Department,” Siyambalapitiya said.
The government has also given the companies a grace period till December 29 this year to settle arrears.
“If they still are unable to pay by the agreed due date, legal action will be taken against them, and their licences will be cancelled. (Colombo/Nov7/2023)