Sri Lanka Cracks Down on Alcohol Tax Defaulters

COLOMBO (News 1st); The Government of Sri Lanka has issued a new gazette notification revising the procedures for excise tax payments and fee collections related to alcohol production.

The notification, issued by President Anura Kumara Dissanayake in his capacity as the Minister of Finance and Economic Development, comes into immediate effect from today.

Under the revised regulations, all licensed alcohol manufacturers are now required to settle their excise tax dues on or before the stipulated deadline, in accordance with Section 22 of the Excise Ordinance.

Failure to do so within 30 days of the due date will result in the suspension of the bottling license.

Furthermore, if the outstanding tax or fees remain unpaid for more than 90 days, all licenses held by the defaulter will be suspended. 

This marks a significant tightening of enforcement, as the previous suspension period for non-compliance was six months, which has now been reduced to three months.

The Excise Department confirmed that while these provisions existed in the law, they had not been actively enforced until now. 

The new gazette introduces these measures as binding legal obligations, reinforcing the government’s commitment to improving tax compliance and revenue collection in the excise sector.