W. M. Mendis Co. owned by Aloysius family biggest culprit

Commissioner General of Excise M. J. Gunasiri has claimed that a directive issued by the Committee on Ways and Means (CWM) pertaining to the collection of unpaid duties for 2023 by 30 June, 2024, couldn’t be carried out for want of Finance Ministry approval.

The Excise Chief said so at a CWM committee, chaired by MP Patali Champika Ranawaka. He said the implementation of the parliamentary directive was subject to the Finance Ministry approval.

This issue has been dealt with during a recent session of CWM held to examine the progress made by revenue collection authorities, namely the Customs, Inland Revenue and Excise Department, according to a statement issued by M. Jayalath Perera, Director Legislative Services/Director Communication (Acting).

Ranawaka questioned the Excise Department over its failure to recover as much as Rs 7.9 bn owed by liquor manufacturers. The former Minister, who now heads Eksath Janaraja Peramuna, pointed out that out of about 25 liquor manufacturers in business only a few had failed to pay taxes properly.

Ranawaka has disclosed the liquor manufacturers owe the state coffers Rs 7.9 bn and W.M. Mendis accounts for Rs 5 bn of that amount. He has said the unpaid taxes must be collected and it is not not fair to burden the public with extremely high indirect taxes.

The parliamentary committee has directed the Finance Ministry to suspend production at distilleries operated by those who have not paid their dues.The committee has also noted that the Excise Department has not been able to report the progress made in respect of probes into fake security stickers.

The Inland Revenue has reported the collection of taxes amounting to Rs 902 bn by June 30, 2024 though the target was Rs 826 bn. However, the failure on the part of the Inland Revenue to collect taxes amounting to Rs 29 bn from state enterprises, too, was disclosed during the proceedings. (SF)