JVP: Govt. moving to reward two of its cronies with new liquor manufacturing licences

The JVP yesterday renewed its accusation that the government was planning to issue two new liquor manufacturing licences to SLPP’s cronies.

Addressing the media at Anuradhapura, JVP Central Committee Member and former MP Wasantha Samarasinghe said one of the licences would be given to a very close friend of the Finance Minister to manufacture liquor.

“The other licence is to be given to a businessman who is already engaged in importing spirit and bottling them here. That licence is given to manufacture wine.”

The JVPer said that the issue had been raised by several others, but the government had failed to give an assurance that no new liquor manufacturing licences would be issued. “The issue has been raised in Parliament, too, but the government is determined to go ahead and give the licences without following proper procedure. “Worst, under the guise of producing local wine, the liquor manufacturer would get tax concessions. He would have to pay only Rs 900 per litre of liquor, which would be labeled as a local product. The actual tax should have been Rs 3,200 per litre. The businessman will have the chance of evading Rs 2,300 per every litre he is going to produce.”

When the issue was raised in Parliament the government promised to look into the matter, but the process of issuing the licences was in progress on the sly, Samarasinghe alleged.

 “We heard the Commissioner General of Excise say at a recent press conference that no new licences would be issued for the manufacture of liquor without the permission of the Finance Minister. The power to issue such licences is with the Minister of finance.”

The JVP Central Committee member said that the Committee on Public Accounts had recently revealed that the liquor producing companies were dodging taxes, causing a loss of Rs 2,380 million to the state coffers. Their surcharges were around Rs 1,900 million. “It is in this context that several leaders in this government are planning to issue new liquor manufacturing licences.”

Samarasinghe said the JVP would remain alert and do everything in its power to stop the government from issuing the licences at issue.