Pathirana scoffs at weak response from Excise Dept. to allegations of malpractice

Friday, 23 April 2021 00:00 - - {{hitsCtrl.values.hits}}

SJB Parliamentarian Buddhika Pathirana

SJB Parliamentarian Buddhika Pathirana, at a media conference yesterday, stated that the Department of Excise in a statement had in effect accepted the allegations he made against the office in Parliament on Tuesday.

Pathirana alleged the Excise Department has misled the Finance Ministry and misappropriated over a billion rupees from the Treasury annually over tax stamps for alcohol products.

The Excise Department responding to Pathirana in a media release on Wednesday conceded QR codes in tax stamps affixed to foreign liquor bottles do not work and they would only come online later this year. This raises questions over the process and expenditure involved to affix redundant tax stamps on bottles. The Department added it hopes to begin introducing tax stamps to local liquor products from July this year, by when the system should come online.

Pathirana said that by adding a sticker on imported liquor bottles the Department has misled the Government and even the public with regards to products, tax paid and their perceived quality. The SJB MP questioned why the Excise Department cannot present the printing of the tax stamps to the Government printer and instead chose to hand the project to a disputed Indian company; resulting in foreign exchange loss. Pathirana pointed out that the Company in question is blacklisted for malpractice with passports in India. The Excise Department did not comment on the matter in its statement.

The SJB MP also charged that gazettes had been issued to extend operating hours of toddy taverns, which will induce the public to consume more. He also charged that the Excise Department and the Government is moving to legalise artificial toddy, which is significantly harmful to human health. Pathirana remarked that any attempts to standardise artificial liquor production must be prevented.

He also stated that 52 liquor sales licenses have been issued over the past seven months, and furthermore manufacturing licenses to produce alcohol products.