Excise Dept. expedites digitalisation of revenue stream
The Excise Department (ED) is in the process of full digitalisation of its revenue administration process, expediting the IT application system development and linking with the Customs Department and the Inland Revenue Department, Commissioner General of Excise M. J. Gunasiri said.
This initiative is being carried out in consultation with the Finance Ministry enabling the ED to streamline the revenue collection more efficiently and to significantly increase its income, he added.
The Committee on Ways and Means recently inquired into this matter and made several recommendations for the Revenue Administration System for Excise Department (RASED) by including several components.
An effective payment plan is to be devised to recover the default taxes from all liquor manufacturers. The payment plan would ensure the timely recovery of default taxes, he added.
It has recommended to include a facility to automatically cancel the liquor licence of the liquor manufacturer if any offence is committed (non-payment of taxes or manufacturing of liquor bottles with fake security tax stamps etc) and to renew liquor licence online.
A new system will be introduced for liquor manufacturers to efficiently collect revenue from the sale of liquor bottles within a 7-day timeframe from liquor retail shops.
Subsequently, these manufacturers should be able to remit excise taxes to the Excise Department of Sri Lanka within a period of 15 days.
The Treasury set a revenue target of Rs. 217 billion for the ED in 2023 whilst for 2024, it was given a revenue target of Rs. 232 billion.
As of 31 December 2023, despite two revisions in excise taxes throughout the year, the department managed to collect Rs. 171.2 billion. In comparison, it had collected Rs. 170.4 billion in 2022.
The ED currently has outstanding taxes totalling Rs. 6.9 billion for between 15 and 20 years, with Rs. 1.4 billion attributed to the year 2023, he said.
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