July 17, Colombo (LNW): The Committee on Ways and Means has expressed significant dissatisfaction with the Excise Department for not implementing the recommendations to collect a total tax amount of Rs. 1.1 billion from liquor manufacturers for the year 2023.
Despite being instructed on April 24 to collect these arrears by June 30, the Department has failed to take appropriate measures.
At a committee meeting held last week at Parliament, chaired by MP Patali Champika Ranawaka, it was revealed that the Finance Ministry had not responded to inquiries made by the Excise Department on May 24 regarding inconsistencies in excise duty collection agreements.
The committee learned of substantial tax arrears owed by several companies: W.M. Mendis & Co. Ltd. (Rs. 1,659 million), Higurana Distilleries (Rs. 102 million), Synergy Company (Rs. 37 million), and Wayamba Distilleries (Rs. 79 million). In total, tax arrears from 2023 up to June 15, 2024, amount to Rs. 1.8 billion.
The committee emphasized that both Parliament and the public would be informed about the Excise Department’s failure to meet its obligations. Payment agreements with companies, other than W.M. Mendis, have lapsed, and the Commissioner General of Excise was criticized for not taking necessary action and avoiding the committee.
Chairman Ranawaka highlighted that the Excise Department’s disregard for the committee’s recommendations was disrespectful to both Parliament and the committee. Consequently, the committee instructed the Secretary to send a written notice to the Finance Ministry to temporarily suspend the licenses of alcohol producers who have not paid their 2023 excise duty arrears.
The committee also criticized the Excise Department’s leniency towards liquor manufacturers who have not paid the required excise duty while continuing to levy taxes on the general public. Additionally, the committee blamed the Finance Ministry for not implementing recommendations from four previous committee meetings.
Other issues discussed included the flooding at the Kandy railway station due to an inadequate drainage system, which requires urgent maintenance and repairs. The committee advised submitting proposals to the District Coordinating Committee and seeking assistance from the World Bank.
Furthermore, the committee examined a petition concerning the provision of muddy water to residents in the Avissawella area by the National Water Supply and Drainage Board. Discussions indicated that both authorized and unauthorized gem mining caused the issue, prompting a request for a list of licensed gem mining activities related to the Getaheththa canal from the National Gem and Jewelry Authority (NGJA).
