Liquor tax arrears exceeding Rs. 6 billion will be pursued through District Court action, the Attorney General’s Department told the Supreme Court.
Legal action to recover liquor tax arrears exceeding Rs. 6 billion will be filed before the District Court, the Attorney General’s Department informed the Supreme Court.
Additional Solicitor General Nerin Pulle made the submission on behalf of the Attorney General when the court considered a Fundamental Rights petition filed by 17 social activists.
Chief Justice Preethi Padman Surasena and Justice Arjuna Obeyesekere comprised the two-judge Supreme Court bench hearing the matter.
The petition challenges the alleged failure of liquor manufacturers to settle more than Rs. 6 billion in unpaid taxes. It also seeks an order directing the relevant state authorities to recover the full outstanding amount without further delay.
The petitioners stated that unpaid taxes owed by liquor manufacturing companies had reached Rs. 6.221 billion by June 15, 2023.
Social activist Sanjaya Mahawaththa is among the 17 petitioners who brought the case.
They named several state officials and liquor manufacturers as respondents. These include the Commissioner General of Excise, the State Minister of Finance and the Auditor General.
The corporate respondents include W.M. Mendis & Co. Limited, Wayamba Distilleries (Pvt) Ltd and Globe Blenders and Bottlers Lanka (Pvt) Ltd.
McCallum Brewing Co. (Pvt) Ltd, Kalutara Co-operative Distilleries Society Ltd and Finland Distilleries Corporation (Pvt) Ltd were also named.
Other respondents include Synergy Distilleries (Pvt) Ltd, Randenigala Distilleries Lanka (Pvt) Ltd, Hingurana Distilleries (Pvt) Ltd and Royal Ceylon Distilleries (Pvt) Ltd, along with several others.
The Supreme Court fixed the petition for further hearing on November 16.
President’s Counsel Saliya Pieris appeared for the petitioners with Manujaya De Silva. Attorney-at-Law Manjula Balasooriya instructed them.
The Attorney General’s Department’s assurance marks a significant development in the effort to recover the disputed liquor tax arrears through formal court proceedings.
