The Sri Lanka Customs and Inland Revenue Department have seized a stock a barrels containing spirit to manufacture alcohol illegally imported by Randenigala Distillers. However, a directive has been issued from a higher office to immediately stop the relevant investigations.
An investigation by the Inland Revenue Department has found that the stock of spirits that have been imported under the guise being used to manufacture eau de cologne was to be used to manufacture alcohol.
A senior official from the Inland Revenue Department said that the stock that had imported using false documents has resulted in a million rupee tax fraud.
Randenigala Distillers used to manufacture alcohol with the assistance of former Kotte Mayor, the late Chandra Silva.
The official said that large numbers of barrels of spirits are annually imported to the country claiming to be used to manufacture eau de cologne and it has resulted in the country losing out on billions of rupees in state revenue.
While the government has permitted the importation of spirits for the manufacture of eau de cologne paying low taxes, the taxes imposed on spirits imported to manufacture alcohol is very high.
It is a group of friends of a powerful government politician that is involved in this spirit racket.