In a bid to address the longstanding tax default of Rs. 5.8 billion by W. M. Mendis and Co. Ltd., the newly appointed Excise Commissioner General (ECG), U. L. Udaya Kumara Perera, has proposed a partial settlement plan. This approach aims to recover 50% of the arrears while reactivating the liquor giant’s suspended production license.
Speaking to Daily Mirror, Perera described the proposal as a practical solution to recover significant revenue for the state and safeguard the livelihoods of the company’s 600 employees and 1,500 dependents.
The proposed plan would require W. M. Mendis and Co. Ltd. to pay Rs. 3 billion of the arrears. Once this payment is made, their suspended license would be reinstated, enabling the company to resume operations under a monthly renewal scheme contingent on settling new production taxes.
“The company holds three Excise manufacturing licenses for facilities in Welisara, Moragalla, and Kalkuda, including a spirit manufacturing plant and bottling units. Resuming their operations is essential to prevent further economic loss while ensuring compliance with tax obligations,” Perera stated.
The Excise Department suspended W. M. Mendis’s production license on December 4th after repeated warnings over the unpaid arrears went unheeded. The department is now awaiting a proposal from the company outlining its repayment plan.
The resolution is seen as a balanced effort to recover substantial funds while preventing job losses and broader economic repercussions.
Source – dailymirror.lk https://www.dailymirror.lk/breaking-news/Excise-proposes-settlement-of-50-defaulted-tax-to-restore-production-licence-of-W-M-Mendis-and-Co/108-298855
