IRD action against 7 distilleries

AMID rampant use of fake excise duty sticker by liquor producers, the Inland Revenue Department (IRD) has taken action against seven liquor factories, sealing one and barring product distribution of six such factories. The IRD has sealed Purbanchal Distillery based in Duhabi, Sunsari, barring it from manufacturing liquor until it submits the details of excise duty payment. The distilleries whose liquors have been banned in the market are Trijuga Distillery of Saptari, Annapurna Distillery of Sunsari, Dhanusha Distillery of Janakpur, Sarada Distillery of Siraha, Rainbow Distillery of Bhairawaha and Dovan Distillery of Palpa. IRD Director General Tanka Mani Sharma said these distilleries were found evading taxes through the use of counterfeit excise duty sticker. The IRD has made it mandatory for all distilleries to paste excise duty stickers on their products. “Purbanchal Distillery has been barred from producing liquor products after our raid at its factory found fake excise duty stickers pasted on dozens of its brands,” said Sharma. “In case of other distilleries, their products were found in the market with the fake stickers.” Of the 62 distilleries registered at the IRD, seven have been found evading taxes using fake excise duty stickers. The department carried inspection on all of the distilleries in last two weeks. Ram Mani Dawadi, chief of IRD’s excise duty division, said all the distilleries have been asked to furnish details about their excise duty payment. “Although the initial findings suggest these companies have evaded excise duty worth millions of rupees, the department is studying the real situation,” he said. The IRD has said these distilleries will have to pay fines and the owners may have to face imprisonment if their involvement in tax fraud is proved. “If the evaded tax amount is high, the IRD may also seize their licences,” Sharma said. The IRD is now investigating the source of the fake stickers. “We have received a number of complaints against rackets producing fake excise stickers and selling them to the distilleries,” he said. Meanwhile, the IRD has shuttered a retail shop in Indrachowk, Kathmandu, for selling foreign cigarettes without excise duty sticker. “We will soon form a separate team to probe the matter at the earliest,” said Sharma