The Attorney General has informed the Supreme Court that the Department of Excise has decided to suspend the licenses of five liquor manufacturers, including W.M. Mendis & Co. Ltd., if they fail to pay arrears taxes before November 30, 2024.

Additional Solicitor General Nerin Pulle, representing the Excise Commissioner General, informed the court of this when a fundamental rights petition filed by social activist Sanjaya Mahawaththa and others was taken up today (13). 

The petition was heard before a bench comprising Justices Preethi Padman Surasena, Yasantha Kodagoda, and Priyantha Fernando.

The Additional Solicitor General stated that five liquor manufacturing companies including W. M. Mendis & Co Ltd and Royal Distilleries (Pvt) Ltd, that have been named as respondents, have agreed to pay the arrears by the end of the month. He also reiterated the Excise Department’s decision to suspend their licenses if payments are not made on time.

The three-judge panel ordered a follow-up hearing on January 22, directing the respondents to report on their progress.

According to the case report, the tax arrears owed by these companies amount to nearly Rs. 6 billion. 

The petitioners argue that the prolonged tax defaults have significantly impacted the national economy and requested that the Excise Department enforce the collection of overdue taxes and suspend licenses for non-compliance.

CORRECTION: The article had previously incorrectly named “Royal Casks Distilleries (Pvt)” Ltd as one of the liquor manufacturers with tax arrears and has now been corrected as “Royal Distilleries (Pvt) Ltd”.