AG tells CA special tax concessions to Lion Brewery stopped by Minister

By S.S. Selvanayagam

The Attorney General has informed the Court of Appeal that pursuant to the writ petition filed by Buddhist monks, the Finance Minister has stopped the special tax concession granted to Lion Brewery (Ceylon) Ltd.

The writ petition came up before a bench comprising justices Rohini Walgama (Court of Appeal President) and S. Thurairaja.

The matter was fixed for 5 July.

Senior Deputy Solicitor Arjun Obeysekera, appearing for the Minister and Attorney General, also told court that no further concession had been granted.

Sanjeeva Jayawardane, appearing for the petitioners, moved to obtain instructions from the petitioners as to whether they were satisfied with the position.

He informed Court that the first respondent, Minister Ravi Karunanayake, had ceased to hold the portfolio of the Minister of Finance and moved to substitute in Mangala Samaraweera.

Buddhist Monks Agulugalle Sri Jinananda Thero, Rathgama Sumangala Thero, Biyagama Suseela Thero, Udagomadiya Sumana Thero, T. Mahanama Thero and Galgagodadeniya  Rathnawansha Thero filed the petition.

They cited former Finance Minister Karunanayake, the Director General of Customs Dr. Nivelle Gunewardena, Treasury Secretary Dr. R.H.S. Samaratunge, Treasury Deputy Secretaries, the Commissioner General of Excise, the National Authority on Tobacco and Alcohol, Lion Brewery (Ceylon) Plc and others as respondents.

Jayawardane PC appeared for the petitioners. K. Kanag Iswaran PC appeared for Lion Brewery.

The petitioners state they are challenging the purported orders issued by the Finance Minister to grant a customs import duty concessions for beer.

The petitioners sought a writ order restraining the Finance Minister and other respondents from granting a full or part exemption or concession of customs import duty in respect of any alcoholic products imported by a brewery company.

The petitioners stated that according to calculations, the Government will lose Rs. 371 per litre of beer of less than five percent alcohol and Rs. 254 per litre of more than five percent alcohol imported by Lion Brewery (Ceylon) Plc.

“If Lion imports around five million litres of beer per month for four months, the potential revenue loss for the Government would be Rs. 6 billion,” the petitioners said.