The Supreme Court was informed yesterday (13) that five major liquor manufacturing companies, including W.M. Mendis & Company, owe billions in unpaid excise taxes to the government.
The Commissioner General of Excise and the Attorney General stated that licences for these companies would be suspended if the dues were not settled by November 30.
This announcement was made by Additional Solicitor General Nerin Pulle representing the Commissioner General of Excise and the Attorney General, during a hearing on a fundamental rights petition. The petition sought immediate suspension of the licences of five liquor manufacturers for evading tax payments.
The case was heard before a Supreme Court bench comprising Justices Preethi Padman Surasena, Yasantha Kodagoda and Priyantha Fernando. The Court directed that the petition be reviewed again on January 22, 2025.
The petition was filed by 17 individuals, including Sanjaya Mahawatte and Susantha Ranjith Liyanarachchi, represented by Attorney Manjula Balasuriya.
The respondents included Excise Commissioner General M. J. Gunasiri, the Finance Ministry Secretary, W.M. Mendis & Company, Royal Distilleries Pvt Ltd, and three other major liquor producers.
The petitioners claimed that a significant portion of government revenue relies on tax collection and highlighted that liquor manufacturers are bound to pay annual excise taxes to retain their operating licences. However, the respondents had allegedly evaded tax payments for several years, resulting in an outstanding debt of around Rs.6 billion.
The petitioners further accused the Commissioner General of Excise and his officials of knowingly renewing or issuing new licences to these companies despite their tax arrears. The petition urged the Court to order immediate recovery of the outstanding taxes from the defaulting companies and to compel the Excise Department to submit a report detailing unpaid dues.
President’s Counsel Razik Zarook appeared on behalf of the respondent companies, while Additional Solicitor General Nerin Pulle represented the Attorney General.
The petitioners requested that the Court ensure stricter compliance and accountability from the liquor manufacturers to prevent further revenue losses for the government.
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