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Excise Department to Suspend Licenses of Five Liquor Companies Over Unpaid Taxes, Supreme Court Informed

November 13, 2024
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Excise Department to Suspend Licenses of Five Liquor Companies Over Unpaid Taxes, Supreme Court Informed
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The Attorney General informed the Supreme Court today (13) that the Excise Department plans to suspend the licenses of five liquor manufacturers, including W.M. Mendis Company, should they fail to settle outstanding tax dues by the 30th of this month.

This announcement was made by Additional Solicitor General Nerin Pulle, representing the Commissioner General of Excise, during the hearing of a fundamental rights petition filed by a group led by social activist Sanjaya Mahawatte.

The petition was heard by a three-judge Supreme Court bench comprising Justices Preethi Padman Surasena, Yasantha Kodagoda, and Priyantha Fernando.

In his submission, Additional Solicitor General Pulle indicated that W.M. Mendis Company and four other liquor manufacturers, including Royal Distilleries, were notified to clear their outstanding taxes by the month’s end. He stated that the Excise Department has resolved to suspend these companies’ licenses should they fail to comply.

The bench then scheduled the next hearing for January 22 and instructed the respondents to update the court on their progress in addressing the tax obligations.

According to court records, the combined unpaid taxes of these five companies amount to nearly six billion rupees. The petitioners argue that these companies’ continued non-payment of taxes has severely impacted the national economy.

Consequently, the petition requests that the Commissioner General of Excise be ordered to recover the overdue tax amounts and revoke the licenses of companies found to be evading tax payments.

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