SOE instructs Excise Dept. to recover tax dues from large-scale liquor manufacturers

The Sectoral Oversight Committee (SOE) on National Economic and Physical Plans has instructed the Department of Excise to apprise this Committee of the pending laws and regulations necessary to increase the efficiency of the Department.

SOE Chairman Mahindananda Aluthgamage issued the instructions to the officials of the Excise Department during the Committee meeting held in Parliament on Thursday (22).

Mr Aluthgamage pointed out to the officials of the Excise Department that the expected revenue from the Excise Department the year is 217 billion rupees and as of June, only 72.985 billion rupees have been earned. He said that due to this, the Excise Department of Sri Lanka has not reached the expected income.

The officials present here pointed out that the production and sale of alcohol has decreased due to the increase in the price of alcohol. The officials pointed out presenting data that the expected income cannot be reached due to this.

Mr Aluthgamage said that the revenue of the Excise Department has not increased for a considerable number of years. Because of this, it is not observed that the income has decreased only due to the increase in the price of alcohol. Therefore, to collect taxes directly from the large-scale alcohol production companies in this country. He also instructed to revoke the licenses of the manufacturing companies that fail to pay taxes in any way.

Furthermore, Mr Aluthgamage pointed out the need for digitization of the Sri Lankan Excise Department. He pointed out that this institution is with a history of 110 years and the lack of digitization of this institution is a weakness.

The Committee also instructed to prepare a system to check whether stickers are affixed to each liquor bottle in the liquor factories. It was mentioned that there is a trend of liquor bottles being released in to the market without stickers. Due to this, the Committee instructed officials to prepare a proper mechanism to check the matter. The Chair also instructed to take the necessary steps in order to cancel the liquor license of the liquor shops selling alcohol without the sticker. The Chair also advised to check the quantity of liquor supplied to the liquor factories and the quantity of bottles distributed from the factories and take necessary measures if any irregularities occur.

Mr Aluthgamage further instructed that the officials attached to the Excise Department who are working in the liquor factories have been working in those companies for a long time, thus it is observed that corruption and irregularities are taking place and therefore to prepare a system to exchange these officials periodically.

The Chair of the Committee instructed to inform the Committee of the laws and regulations that have stopped in the middle, which are necessary to increase the efficiency of the excise department.

Accordingly, Committee Chair recommended to give a report to this Committee within two weeks showing the necessary plans to increase the income of the Sri Lanka Excise Department in relation to these discussed matters

MPs Harshana Rajakaruna, Gunathilaka Rajapaksha, Nipuna Ranawaka, Sudath Manjula, were present at the Committee meeting.