Questions over hurried new excise license raised in Parliament

SJB MP Buddhika Pathirana yesterday in Parliament raised a query on whether the Excise Department would be hurriedly issuing a new license for the manufacture of alcohol products this week.

Pathirana said that such applications required the Excise Department to conduct an examination of the proposed location, plus obtain public opinion after giving due notice. Pathirana alleged that this license was to be issued hurriedly without following any such procedure. 

He also revealed that the application had been made under the guise the relevant company would produce a local wine, but this would result in significant revenue loss to the Government if it is found to the contrary. Pathirana said tax on producing spirits is around Rs. 3,200 per litre, whilst for products listed as local wine it would be just about Rs. 900. 

The SJB MP directed these queries to State Minister of Money Nivard Cabraal, and added 25 licenses had been issued to manufacture alcohol in this country, but five of these licensed producers provide up to 95% of revenue to the State.

Pathirana asked if the other 20 only provide 5%, of revenue, a question arose on whether there was any case of tax evasion. He requested the State Minister to investigate the matter, and Cabraal said in the House that he would look into the matter

Pathirana added that Police and STF had powers to raid illicit liquor outlets, but the aspect of filing cases came under the Excise Department. However, the Excise Department often gives a spot fine and releases suspects who resume their activities. Pathirana called on the Justice Ministry to change the relevant regulation and afford more powers to the STF and Police in regard to excise.