SJB accuses govt. of trying to reward crony with new liquor production licence

Also exposes Excise shenanigans

Minister Cabraal assures a probe

By Saman Indrajith

The Samagi Jana Balavegaya (SJB), yesterday, accused the government of trying to issue a new liquor manufacturing licence to one of its cronies notorious for tax frauds.

SJB Matara District MP Buddhika Pathirana told Parliament that he had information of an attempt to issue a new liquor licence through the Excise Commissioner General without following the proper process of spot inspection, etc., in a transparent manner.

“This licence is to be issued on Friday (4). The government is in a mighty hurry to do so.”

He said that currently there were 25 liquor production licences in the country. Five of those licence holders accounted for around 93-95% of total revenue of the government through liquor production.

Pathirana said that he had received information that one of the tax evaders who currently produced a wine brand had got hold of some government politicians to secure a liquor manufacturing licence. “The process has been fast tracked in a suspicious manner. As per the alcohol percentage, he should pay taxes on the basis of Rs 3,200 per litre but he has managed to convince the Excise authorities he is producing an indigenous brand of wine. He pays only Rs 900 per litre. The state has lost around Rs. 80 billion as a result. Now, the government is going to give him a liquor manufacturing licence!”

State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal promised that he would conduct an inquiry into the matter and inform the House of its progress.

MP Pathirana said that the tax evading businessmen and their tax lawyers were making use of the age-old provisions of the Excise Ordinance and deprived the government Rs 2,300 from each litre of wine being sold in the market.

MP Pathirana said that artificial toddy producers avoided arrest thanks to the spot-fine system introduced by the Excise Department.

“When the Excise officers visit an artificial toddy factory and issue a receipt for a spot-fine, police cannot raid that place on the same day because one cannot be punished for the same offence twice. I have media reports that during recent raids on five such licenced toddy plants, the Excise Department found 50,000 litres of artificial toddy in one place, 40,000 litres in another plant, 30,000 litres in another factory and 60,000 litres in another site and imposed spot fines on them. By doing so they deprived the government of Rs. 9.5 billion. So, this is how the officials work. I request the ministers to read the newspapers. I also request Justice Minister Ali Sabry to look into this issue and assist the police to raid these breweries.