Background: Largest Arrack & liquor players -Sri Lanka's Lion,Carlsberg,ThreeCoins are manufactured and distributed by Carsons led by Harry-Mano Selvanathans, W.M. Mendis Arrack is owned by South Indian origin Arjun Aloysius apart from Harry J's Distilleries (DCSL) however Carsons also has exclusive authorised rights to distribute famous Liquor Brands to Sri Lankan Liquor Consumers- Supreme Court lead by K.Sripavan gave a verdict yesterday where New Ranil-MY3 will lose Rs.2.4 billion Excise Tax to State Treasury from Each Liquor and Beer player in the country.Finance Minister Ravi Karunanayake only brought this new rule for Sri Lankan Liquor players to pay at least a minimum of Rs.200 million per month as Excise Tax.
SC suspends Excise Tax on Spirit Makers
WEDNESDAY, 25 MARCH 2015 - 13:57 |
The Supreme Court ordered today to suspend the gazette notification with regard to charging a minimum 200 million rupees monthly tax from liquor and beer manufacturing companies.
The Supreme Court issued this order when a petition filed by 4 liquor and beer companies was taken for hearing today.
The proposal to charge 200 million rupees monthly tax from liquor and beer companies was made in the interim budget presented recently to parliament.
The 4 companies filed the petition citing that their fundamental rights were violated by imposing this tax.
The Supreme Court also ordered the respondents including the Finance Minister to file objections before 30th of April
SC suspends Rs. 200m Excise TaxChamikara Weerasinghe
The Supreme Court yesterday issued an interim order suspending the gazette notification that imposes minimum Rs. 200 million Excise Tax on alcohol and beer manufacturers.
The new minimum Excise Tax of Rs. 200 million was imposed on spirit manufacturers through the government's interim budget. It was published in the February 13 Gazzette. The licenses of liquor manufacturers, who fail to pay this monthly Excise Tax, were to be cancelled, according to it. The court was taking up a petition filed by four alcohol and beer manufacturers.
The lawyers appearing for complainants pointed out that the tax concerned have been imposed on them disregarding the production quantity and the capacity of the manufacturer in terms of size of his business and that it is unfair to impose a tax of a kind on everyone.
The lawyers said their clients, the petitioners Nipon Expo, Acme Lanka, Scotland Distilleries, Sangari Sundaralingam and Uva Glen are unable to run their spirit enterprises because of the situation.
It was also pointed out that the minister has no power to impose excise taxes on beer or alcohol producers under section 28 (A) of the Excise Act. The respondents' lawyers, Deputy Solicitor General Viraj Dayaratna said that the tax was imposed based on a policy decision of the government and that under section 22 of the Excise Act, the Minister has been empowered to impose such taxes.
A panel of three Supreme Court Judges led by Chief Justice K. Sri Pavan, Justice Sisira de Abrew and Anil Gunaratna examined the petition. The judges of the Supreme Court said that at a glance it appears when considering the sections 28 (A) and 16(C)) of the Excise Act, that the minister does not have authority to impose taxes but he is empowered to cancel or suspend the licenses concerned.
The Supreme Court ordered the Finance Minister and other respondents to file objections.
The petition will be taken up on April 30. .
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