CID to take over investigation into fake alcohol tax stamps

Friday, 20 January 2023 00:27 - - {{hitsCtrl.values.hits}}

State Minister of Finance Ranjith Siyambalapitiya is to lodge a complaint with the Criminal Investigations Department regarding alleged malpractices concerning tax stamps on alcohol products.

Last week, several bottles containing fake tax stamps were discovered from wine stores in Thambuththegama, Thalawa and Kahatagasdilliya. Previously it emerged that QR codes affixed to these stamps do not work and provide details on the product and tax paid.

Speaking in Parliament earlier this week, Justice Minister Wijeyadasa Rajapakshe said the tender to supply tax stamps had been awarded to one of the most corrupt organisations in the world, which has been blacklisted in many countries. The company has been found guilty of distributing tax stamps to companies for payment, leading to millions in losses to State coffers.

The State Minister of Finance received a report on the matter from the Excise Director General this week, and the Ministry has decided to refer the matter to the CID. The Ministry has also assigned a service provider to verify reports on malfunction of QR codes, whilst a separate unit was formed at the Excise Department to investigate tax collections in relation to stamps issued.

The Sri Lankan Excise Department launched a special app recently titled ‘Excise Tax Stamp Validatot’, whereby consumers could verify the authenticity of tax stamps and report any discrepancies to the department.