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“The Ministry of Finance and the Department of Excise took this decision mainly to promote local tourism. Do you think Sri Lankans will stay or dine in a hotel that doesn’t serve them liquor? No. They will go to another hotel that serves liquor,” he stated.
Bodaragama was appointed as the Commissioner General of Excise on 13 January this year and his last day at the office was 12 December 2020. Inland Revenue Department Deputy Commissioner General – Tax Administration (Corporation Small Entities and Non-Corporate Sector) M.J. Gunasiri was appointed as the new Commissioner General of Excise last week. Responding to allegations and rumours of him granting special privileges to selected individuals and businesses, Bodaragama added that this is being done merely to make the hotels service oriented and “not due to political reasons as some parliamentarians claim”.
Earlier this month, Samagi Jana Balawegaya Parliamentarian Buddhika Pathirana stated in Parliament that the outgoing Commissioner General was preparing to issue 25 liquor licenses in a hurry before he retires. Further, it was also noted in the Parliament that the Department was preparing to reissue a liquor manufacturing license to a distillery in which a prominent politician holds a majority stake.
In response to the second allegation, in late November, Bodaragama stated that the license to operate Wayamba Distilleries (Pvt.) Ltd. in Kurunegala was reissued as the Department, the Ministry of Finance, and the owners of the distillery had come to a mutual agreement to settle the outstanding tax payments on an instalment basis to the Department.
Wayamba Distilleries was sealed by the Police on 19 January 2015 reportedly due to skipping tax payments and operating storage facilities without a proper license. Its license for liquor manufacturing too was cancelled subsequently.
Bodaragama stated that the distillery made a part payment of their outstanding taxes recently and obtained their license to manufacture as the Department of Excise, Treasury, and the distillery have worked out a plan where the rest of the outstanding tax payments will be paid in equal instalments.
The Department of Excise issues 45 different types of licenses based on the type of business. License fees are fixed for each type and in certain categories, subsidiary licenses are issued free of charge. A fee of Rs. 7,500 is levied for a non-refundable application. Excise licenses are renewed for periods of three years and the license holder can opt to renew annually.
According to the Excise Notification No. 983 in the Excise Ordinance, the annual license fee of the Distillery License, except palmyrah, is Rs. 100 million while the Manufacturer’s Wholesale Arrack/Beer/Foreign Liquor Outlet License, Toddy Bottling License, Wholesale License for Liquor, Supermarket Liquor License, and Tourist Board-Approved Hotel License for hotels with over 200 rooms are Rs. 1 million each.