NEWSArtificial toddy manufacturers deprive govt. over Rs 80 billion in revenue annually – Pathirana- By Saman Indrajith

Minister Cabraal thanks MP for constructive criticism, promises action

Source:Island

The state coffers lost over Rs 80 billion a year owing to tax evasion by artificial toddy manufacturers, Parliament was told yesterday (25).

Matara District SJB MP Buddhika Pathirana said that the total loss would be much higher if the serious health problems those illicit brewers caused to people’s health was taken into account . “As per the reports, artificial toddy is produced by mixing urea, ammonia, nickel cadmium of old batteries and sugar. This harmful brew is sold at liquor shops and used for manufacturing ‘coconut arrack’ and vinegar.” .

In response to the MP’s query whether the government would bring in new laws to nab tax evaders, State Minister of Money & Capital Market and State Enterprise Reforms Ajith Nivard Cabraal said that the MP’s concerns were appreciated and the government would certainly put in place a mechanism to do so.

Minister Cabraal said that there were two types of methods to regulate the quality of toddy, which was used to produce vinegar. “The first method should be initiated by the vinegar producers who have doubts about the quality of toddy they used. The producers could send samples of the suspected toddy to the Government Analyst’s Department and ask for a report. Upon receipt of the report, the producers could decide whether they would use the same material. The Excise Department officials could visit the vinegar factories and test the toddy they use. These two methods are employed at present.”

MP Pathirana said that some officials who were in the pay of toddy manufacturers compiled false reports to mislead policymakers. “I want to know whether an independent probe could be arranged with a team of investigators comprising officials from the Ministries of Finance, Health and the Trade Ministry’s Consumer Protection Authority to ascertain the damage inflicted by artificial toddy on our society,” the MP queried.

Minister Cabraal said that he would make arrangements as requested by the Opposition MP.

MP Pathirana:

It has been mentioned in the budget proposals that new mechanisms will be introduced to prevent tax evasions. As per the reports, the toddy producers evade taxes to the tune of Rs 80 billion or even more. But an official recently placed the amount at Rs. 40 billion. It is good that the government is introducing a foolproof sticker on the bottles of liquor for which taxes have been paid. Can the government think of a similar method to solve this problem too? The amount of brew being sold as coconut toddy cannot be produced naturally even if all the coconut palms in the country were tapped. Will the government take steps to adderss this issue?

Minister Cabraal:

We understand that MP Pathirana has made very productive proposals and I assure you that we will take them into consideration.