Sri Lanka’s Excise Department collectible defaulted excise duties and penalties have surpassed Rs. 10 billion as the Government changes legal provisions to terminate licences of manufacturers with over 90 days arrears, Deputy Minister of Economic Development Nishantha Jayaweera said. 

Speaking in Parliament yesterday (22), he said that the defaulted excise duties and penalties charged on the defaulted payments at the Excise Department have reached Rs. 10.5 billion.

He said that the default excise duties are at Rs. 4.7 billion, and the 3% penalties for the defaulted payments are at Rs. 5.8 billion.

Moreover, he said that the defaulted excise duty that is collected on raw materials has reached Rs. 223 million.

The deputy minister said that so far, the Excise Ordinance didn’t have provisions to collect the defaulted excise duties.

Therefore, the Finance Ministry has presented provisions to the Parliament within the Excise Ordinance to terminate the licences of the manufacturers on tax arrears for over 90 days.

Accordingly, the new provisions include temporary termination of the manufacturing licence for tax arrears of over 30 days, where the manufacturer can distribute and sell the already manufactured alcohol and tobacco to repay the arrears and regain the licence.

Tax arrears over 90 days will lead to the termination of all licences with the manufacturer.

Jayaweera said that the Government has planned to introduce a new Excise Ordinance to replace the existing law, which is in the final stages of drafting.