Ways and Means committee displeased over failure to recover 2023 tax arrears
The Committee on Ways and Means expressed its strong displeasure over the failure to act on the recommendations given by the committee on 24.04.2024 to collect the total tax amount of 1.1 billion rupees for the year 2023 from the relevant liquor manufacturers on or before 30.06.2024.
The Excise Department stated that the recommendations given by the committee and the contradictions between the agreements for the collection of excise duty in previous years and the measures to be taken in this regard were inquired from the Ministry of Finance on 24.05.02, but no reply was received from the Ministry.
This was discussed on 10.07.2024 when the Committee on Ways and Means met at the Parliament premises under the chairmanship of MP Patali Champika Ranawaka.
Tax arrears
It was revealed that the arrears of taxes of W.M Mendis Company is 1659 million rupees, Higurana Distilleries 102 million rupees, Synergy Company 37 million rupees and Wayamba Distilleries 79 million rupees. Thus, it was also revealed before the committee that the total arrears of taxes to be collected from the year 2023 to 15.06.2024 is 1.8 billion rupees. Although the committee had given the recommendation to fully collect the arrears, the committee emphasized that the Parliament and the public will be informed about the Excise Department’s failure to fulfill its responsibility.
Furthermore, it was revealed that the payment agreements made by the Excise Department with companies other than W.M Mendis have now become inactive. The Chair said that the Commissioner General of Excise has failed to take proper action in this regard and despite this, the Commissioner is avoiding the Committee on Ways and Means. The committee chair further pointed out that the Excise Department is ignoring the recommendations of the Committee and it is disrespectful to the Parliament and the Committee.
The chair of the committee directed the secretary to the committee to send a written notice to the Ministry of Finance to temporarily suspend the licenses of alcohol production of companies that do not pay arrears of excise duty for the year 2023.
The committee also expressed its displeasure over the excise department adopting a lenient policy on liquor manufacturers who did not pay due excise duty while levying taxes on the general public. Also, the committee expressed its strong displeasure regarding the non-implementation of the recommendations given to the Ministry of Finance in four committee meetings.
Furthermore, the attention of the committee was drawn to the flooding of the Kandy railway station. The officers stated before the committee that the drainage system inside the Kandy railway station is not sufficient and that their maintenance and repair activities should be carried out urgently. The committee advised to draw the attention of the World Bank in this regard, to submit these proposals to the District Coordinating Committee, and to contact the Railway Department for the same.
Further investigation regarding the petition submitted with regard to the provision of muddy water to the people of Avissawella area by the National Water Supply and Drainage Board was also taken in to the consideration. There was a discussion regarding the authorized and unauthorized gem mining that has led to the issue and informed to get the list of licensed gem mining related to the ‘Getaheththa canal’ by contacting the National Gem and Jewelry Authority. Accordingly, the chairman of the committee instructed the officers present to observe this issue and submit a related report to the Committee.
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