Excise Department urges companies to settle Rs. 1.8 b unpaid taxes by 30 November

Thursday, 3 October 2024 01:02 - - {{hitsCtrl.values.hits}}

Excise Department Commissioner General M.J. Gunasiri says only Rs. 162 b of Rs. 323 b target achieved so far
Warns legal action will be taken against companies who fail to comply

The Excise Department Commissioner General M.J. Gunasiri yesterday called on liquor manufactures to pay their overdue taxes before 30 November, warning that legal action will be taken against those who fail to comply.

Speaking to the media after a meeting with distillery manufacturers, he insisted that despite the challenges faced by the companies, extended time had already been given for payment.

“The total unpaid taxes for the financial year 2023/24 amount to around Rs. 1.8 billion. The department has a target of Rs. 323 billion for the year, but only Rs. 162 billion has been collected so far,” he said, adding that this year’s target is Rs. 53 billion higher than last year.

The move to collect outstanding taxes comes after the Committee on Ways and Means expressed dissatisfaction in July 2024 with the Excise Department’s failure to act on recommendations to collect Rs. 1.1 billion in taxes from liquor manufactures. Despite receiving instructions on 24 April to collect arrears by 30 June, the Department had yet to take action.

It was revealed that there had been a lack of response from the Finance Ministry despite inquiries made by the Excise Department on 24 May regarding the contradictions in agreements for the collection of excise duty.

The committee was informed of significant tax arrears from several companies; W.M. Mendis & Co. Ltd. (Rs. 1,659 million), Higurana Distilleries (Rs. 102 million), Synergy Company (Rs. 37 million), and Wayamba Distilleries (Rs. 79 million).

In total the arrears of taxes to be collected from 2023 up to 15 June 15 2024 amount to Rs. 1.8 billion.