The Excise Department has put forward a series of proposals to W. M. Mendis Company, whose liquor production license was suspended on December 5 due to a significant tax default. The company’s unpaid excise duties, amounting to Rs. 5.7 billion, include a 3% monthly surcharge. The suspension has effectively halted the company’s production activities, which in turn has caused hardship for its workforce and their families.
W. M. Mendis Company employs around 600 workers, who support approximately 1,500 dependents. In the wake of the suspension, employees have made multiple appeals to the Excise Department, urging the reinstatement of the company’s license to secure their livelihoods.
In response, Excise Commissioner General Udaya Kumara Perera has proposed several measures aimed at addressing the tax arrears while allowing the company to resume operations. Among these proposals is a requirement for the company to make an immediate payment of Rs. 3 billion, which constitutes 50% of the outstanding amount. Additionally, the company must submit a detailed monthly payment plan to clear the remaining arrears over time.
The Commissioner General also stipulated that the company’s manufacturing facilities in Moragolla and Welisara would be permitted to operate on the condition that taxes are paid on time going forward. Under the proposed terms, the company would initially receive a license valid for one month, with the possibility of monthly renewals contingent upon adherence to the payment plan and tax compliance.
Despite these efforts, W. M. Mendis Company has not yet agreed to the proposed conditions. The Commissioner General emphasized that the Excise Department is obligated by law to renew the licenses of companies that fulfill their tax obligations.
The situation has drawn public attention, with many debating whether these proposals represent a pragmatic approach to recovering unpaid taxes or an overly lenient concession to a company with a history of non-compliance. As negotiations continue, the fate of the company’s license remains uncertain.
