The Department of Excise has decided to seek the Attorney General’s (AG) assistance to take legal action against W. M. Mendis and Co., as the Ministry of Finance has rejected a financial plan aimed at reviving the liquor giant while settling its Rs. 5.8 billion tax arrears, the Daily Mirror reports.
The Excise Department revoked the company’s licenses on December 4, 2024, due to its failure to pay accumulated taxes. As a result, operations ceased entirely, affecting 1,300 livelihoods and preventing the company from generating revenue to settle its dues.
In an effort to recover the government’s losses, Excise Chief U. L. Udaya Kumara Perera proposed allowing the company to resume operations by first paying half of the outstanding amount and then covering the remaining dues in installments while continuing to pay monthly taxes. However, the Fiscal Policy Unit of the Finance Ministry rejected the proposal without providing clear reasons, leaving the Excise Department with no alternative but to initiate legal proceedings.
After the Excise Department sent legal papers to the Legal Draftsman, the Finance Ministry requested a new proposal to ensure tax recovery. However, with three months having passed since the company’s closure, the matter now rests with the AG’s Department, raising concerns over whether the government can practically recover the unpaid taxes.
