The licences of five liquor manufacturing companies have been suspended from November 1, due to their failure to pay tax arrears, the Excise Department stated.
Excise Commissioner General Saman Jayasinghe said that the annual licences for these five companies, which had long-standing arrears, expired on October 31 and were not renewed, due to the failure in paying their tax arrears.
The production and distribution of alcohol products of these five companies have also been prohibited by the Excise Department as a result.
Excise Commissioner General Saman Jayasinghe said that some liquor manufacturing companies owe unpaid taxes for an extended period of time and that the department has granted them a grace period with a deadline to ensure that they settle their tax dues during the extended time given. However, only a few companies have settled their tax dues by the deadline given, while one liquor manufacturing company has obtained a 40-day stay order against the decision, the Commissioner said.
Jayasinghe assured that the liquor market will not be facing a shortage of alcohol due to the suspension of these five liquor manufacturing companies as there are more than 20 liquor manufacturing companies that are currently in operation in the country, where two of those companies account for nearly 70 percent of the total liquor production distributed countrywide.
Varuna Dayaratne