Rs 400M lost daily in excise tax evasion racket

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Corrupt officials in the Excise Department were collaborating with liquor manufacturers to defraud the Government of Rs 400 million in taxes on a daily basis, Co-organiser of the Sri Lanka Liquor Licensing Association, Dullas Fernando,alleged.

He was speaking at a media briefing in Kandy yesterday (12).

Fernando also charged a powerful politician’s son was violating the Excise Act by distributing liquor to 500 Sathosa outlets.He alleged the money has been shared among politicians, excise officials and liquor manufacturers for years. This racket has been going on even on Poya days, Fernando charged.

He also asked the President and Prime Minister to investigate the matter and bring tax evaders to justice.

“The Excise Department has assigned a supervising officer to each distillery, but some of them collaborate with top officials to facilitate tax evasion and profit from them,” he added.

Fernando said, that while liquor stores were closed on Poya days, distilleries remained open because they evade paying tax on such days. He claimed that tax evasion took place in all large and small-scale factories, and that the money earned was illegally sent abroad.

BY K.L.Suraweera– Kandy