News
Liquor giants’ licences renewed despite tax default
The Excise Department continues to renew the licences of five leading liquor manufacturers though they owed more than Rs. 1 6 billion in taxes by the end of last year. Excise Commissioner General D.G.M.B. Hapuarachchi said the licences were being renewed on condition that the companies would settle the tax arrears.
The defaulting companies are Globe Blenders, Wayamba Distilleries, Wayamba Spirits, W.M. Mendis and Co. and McCallum Brewery, according to the Excise Department’s annual report which was tabled in Parliament.
In the case of Globe Blenders, Wayamba Distilleries and Wayamba Wholesale Store, agreements were signed with the owners to collect the tax arrears on the advice of the Attorney General, the 2012 report said. According to the agreement, during 2012, only around Rs. 32.2 million had been received of more Rs.1.2 billion these three companies collectively owe the Excise Department.
The biggest defaulter, Globe Blenders, owes nearly Rs. 700 million in taxes while Wayamba Distillers owes nearly Rs. 380 million. Wayamaba Spirits is in tax arrears of around Rs. 143 million, W.M. Mendis and Co. around Rs. 317 million in arrears and McCallum Brewery around Rs. 147 million.
The five companies have been defaulting on tax payments since 2009, collectively owing around Rs. 1.4 billion that year. This amount went up to more than Rs 1.6 billion in 2010 and Rs. 1.7 billion in 2011. The total amount in arrears as of December 31, 2012 was Rs. 1,684,724,233.84.
Meanwhile last year, 55 new liquor licences were issued. This is the highest number of liquor licences in a year issued since 2006. Forty one were issued in 2011, 51 in 2010, 40 in 2009, 36 in 2008, 42 in 2007 and 35 in 2006. However this is still much lower than the 203 liquor licences issued in 2004 and 132 in 2005.
comments powered by Disqus