The Attorney General informed the Supreme Court yesterday (November 13) that the licenses of five liquor companies will be revoked if they fail to pay their outstanding tax arrears by November 30.
This statement was made during a hearing of a fundamental rights petition filed by social activist Sanjaya Mahawatta and others. The case was heard by a bench of justices Preethi Padman Surasena, Yasantha Kodagoda, and Priyantha Fernando.
Additional Solicitor General Nerin Pulle reported that the five companies, W. M. Mendis, Royal Distilleries, Finlay Distilleries, Synergy Distilleries, and Hingurana Distilleries are required to settle their tax arrears by the deadline. If the companies fail to make payment, their licenses will be suspended.
The court has set a hearing date for January 22, 2025, to review the progress of the case and instructed the companies to report on their progress by that time.
The petitioners, who claim that the companies have evaded taxes amounting to nearly Rs. 6 billion, argued that this tax evasion has negatively impacted the national economy. They have requested the Supreme Court to direct the Commissioner General of Excise to collect the owed taxes and to cancel the licenses of the companies involved in evading payments.
