By: Isuru Parakrama
October 03, Colombo (LNW): The Excise Department has announced that liquor producers who fail to settle outstanding tax payments for the 2023-2024 period by 30th November 2024 will not have their licences renewed for the upcoming year.
This directive follows a decision to recover Rs. 1.8 billion in tax arrears from alcohol manufacturers who are yet to meet their financial obligations.
Excise Commissioner General M.J. Gunasiri revealed that the department had resolved to take a firm stance against defaulters during the year’s fourth revenue review meeting.
This gathering, held in Colombo on 2nd October, included representatives from all 27 liquor production companies in Sri Lanka.
The department conducts quarterly discussions with alcohol manufacturers to review revenue targets, assess progress, and address challenges faced by the industry.
Gunasiri emphasised that the government remains committed to ensuring the collection of excise tax revenues and maintaining the independence of the Excise Department.
He assured attendees that there would be no undue interference in the department’s efforts to manage tax collection and regulatory affairs.
Amongst the key decisions made at the review meeting was the introduction of new security stickers for toddy and sake products, aimed at improving traceability and ensuring compliance.
This system will also be extended to other alcoholic beverages from next year. Liquor producers have been instructed to either use their existing security stickers by 31st December or destroy any remaining stock under strict supervision to prevent misuse.
In addition to tax collection, the department intends to take stringent measures against the production of illicit alcohol, particularly Kasippu, which remains a prevalent issue. Gunasiri highlighted that stricter enforcement and legal action would be implemented to curtail the illegal liquor trade.
Furthermore, the meeting addressed the need to eliminate obstacles hindering the export of locally produced alcohol.
