By Shamindra Ferdinando
Chairman of Ways and Means Committee Patali Champika Ranawaka, MP, has said Excise Commissioner General M.J. Gunasiri cannot justify his failure to recover tax arrears from liquor manufacturers by claiming that Treasury Secretary Mahinda Siriwardena has not given approval.
SJB lawmaker Ranawaka, who is also the leader of Eksath Janaraja Peramuna (EJP), alleged that Gunasiri followed an agenda contrary to that of his predecessor Senior Administrative Officer Saman Jayasinghe who was removed in late 2023. Jayasinghe received the appointment on January 2, 2003.
Referring to Excise Chief’s declaration at a recent media briefing held at the President’s Media Division (PMD) that he couldn’t carry out instructions issued by the parliamentary committee to suspend the liquor licences of those who hadn’t paid taxes without approval from Treasury Secretary, MP Ranawaka said the previous Excise Chief had been removed for doing the right thing.
The former minister said that Saman Jayasinghe in Nov., 2023 had suspended licences of five companies for not paying tax arrears. “They started paying arrears and during a short period paid a quite an amount. Their response prompted the Excise Department to revoke the suspension of licenses,” MP Ranawaka said. However, on Dec 04, 2023 one of the five companies suspended the payment of tax arrears, MP Ranawaka said, adding that though the committee directed the Excise Chief to suspend the license issued to that particular company, the President prorogued parliament thereby dissolving the ways and means committee.
MP Ranawaka said by the time the committee was re-appointed Saman Jayasinghe had been shifted and Gunasiri had taken over the vital position.
Addressing the media on Tuesday (27), MP Ranawaka said that the Excise Chief’s claim meant that it was the Finance Ministry that protected W.M. Mendis Company, the biggest culprit.
MP Ranawaka said that the Excise Commissioner himself acknowledged that four or five liquor manufacturers owed the government Rs 7.9 bn.
The former minister claimed that when Gunasiri appeared before his committee Finance Ministry officials present there categorically said that the Excise Department was issued instructions to follow Ways and Means committee directives regarding the tax arrears collection.
MP Ranawaka urged Gunasiri to reveal why one liquor manufacturer has been granted special status.
The ex-minister said that Inland Revenue, Customs and Excise Department under any circumstances couldn’t challenge the assessments made by his committee as the all-party committee entirely depend on data provided by relevant officials.
At the onset of the briefing, MP Ranawaka dismissed the JJB manifesto as a declaration made with an eye on presidential election. One-time JVPer said that the JJB declaration didn’t offer tangible solutions but merely sought to deceive the voting public as they have done previously.
MP Ranawaka found fault with the JJB for not addressing real issues related to revenue collection authorities though usual recommendations regarding additional recruitment, strengthening of laws, etc.
The former JHU heavyweight alleged that the JJB declaration reflected uncertainty and instability. With just three MPs in parliament, in case of their candidate’s victory at the presidential poll how they could form a caretaker cabinet of ministers, MP Ranawaka asked.
Addressing the media at the PMD, senior spokesmen for Inland Revenue, Customs and Excise emphasised strongly that regardless of challenges they were able to meet revenue targets for this year. The officials declared that compared to 2023, their performances were much better and quite significant improvements have been made.
