The Attorney General has informed the Supreme Court that steps have been taken to institute legal proceedings before the District Court to recover taxes allegedly owed by liquor manufacturing companies that have defaulted on their payments.
The submission was made by the Additional Solicitor General, appearing for the Attorney General, when a Fundamental Rights petition was taken up before the Supreme Court. The petition sought an order directing the recovery of the outstanding taxes from the defaulting companies.
By moving the matter to the District Court, the state is pursuing civil recovery of the disputed sums rather than leaving the question solely to the constitutional jurisdiction of the Supreme Court. The step signals that authorities intend to press the defaulting manufacturers for payment through the courts.
The case adds to a broader government drive to tighten tax collection and close revenue gaps as Sri Lanka works to meet fiscal targets under its recovery programme. Revenue authorities have in recent months stepped up enforcement against wilful defaulters across several sectors.
Further proceedings in both the Supreme Court petition and any District Court action are expected as the recovery effort advances.
