Hikkaduwa hotels to legally challenge arbitrary liquor tax
View(s):The Hikkaduwa Hotels’ Association (HHA) will go to courts next month against Minister of Finance, Ravi Karunanayake for imposing an arbitrary liquor tax, hotel sources said.
“We are trying to get a writ on the Minister of Finance against the unreasonable tax on the issuance of our liquor licences,” a HHA member who wished to stay anonymous told the Business Times. He said HHA, being a regional association, refused to pay the 100 per cent increase on the license fee that was imposed on them after the new regime’s mini budget in January.
“We have already paid this year’s liquor licence tax. With the last budget, the Ministry wanted us to pay a similar sum additionally (up 100 per cent) before the 1st of last month, which we refused to pay,” the member said, adding that this fee averages between Rs. 250,000 (for small hotels) and above.
He said that other regional associations have already paid the additional amount, as they wanted to carry on their business. “But this is totally unfair and we’re taking a stand,” he added. He said that some members had discussed this with the Minister who said he’ll consider, but nothing has happened so far.