Chairman of the Parliamentary Committee on Ways and Means, MP Patali Champika Ranawaka, last week proposed the introduction of a standardized digital security sticker for all alcohol manufacturers. The move aims to address the rising issue of counterfeit security stickers that have plagued the industry, parliament sources said.

Addressing a meeting with Excise Department top brass and Finance Ministry officials at a committee room in the parliamentary complex, Ranawaka emphasized that the proposed security sticker should provide consumers with the means to distinguish between genuine and counterfeit alcohol products through the use of QR codes. Additionally, it should enable consumers to ascertain the amount of direct tax payable to the Excise Department and the tax applicable to each specific product.

Concerning the ongoing crackdown on fake safety stickers, officers from the Excise Department revealed that raids targeting these fraudulent stickers have been conducted consistently. Shockingly, in over 90% of these raids, the seized stickers have been found to be counterfeit.

Frustration has mounted due to difficulties in tracking down the culprits responsible for affixing fake stickers to liquor bottles, prompting complaints to the Criminal Investigation Department. Determining the origin of these counterfeit stickers remains elusive, adding to the challenge of resolving the issue.

MP Ranawaka insisted on the need for a comprehensive report on whether retail alcohol establishments have removed these counterfeit stickers. He stressed the importance of sustained raids and announced that establishments producing bottles with counterfeit stickers would have their production licenses revoked from the date of the fine.

The Chairman further instructed the Excise Department to provide a report on fines collected for counterfeit stickers since September 7, 2023. Additionally, he ordered an assessment of the revenue lost by the Excise Department due to these counterfeit stickers and requested a report to be submitted to the committee.

The committee’s discussions also revealed that seven entities have defaulted on their excise duty payments. Notably, Globe Blender and Northwest Spirits stand out as the two entities that owe a substantial 1.5 billion rupees in unpaid taxes. These entities have been given until October 15 to submit tax payment plans, failing which their production licenses will be suspended by October 30.

The committee meeting saw the participation of Members of Parliament Dr. Harsha de Silva, Vasudeva Nanayakkara, Lasantha Alagiyawanna, Ashok Abeysinghe, alongside officials from the Excise Department, Local Income Tax, and the Ministry of Finance. The collective effort aims to combat the persistent issue of counterfeit alcohol security stickers and safeguard the industry’s integrity.