“Allow people to consume liquor if you want high tax revenue: MP”
Daily Mirror reports:
“The government should enable the people to consume liquor in order to meet the desired tax revenue targets, opposition MP Chamara Sampath Dassanayake told Parliament yesterday.
“’You cannot collect the desired tax revenue if people cannot afford to purchase liquor. This is why I have been lobbying for the price reduction of extra special arrack (Gal arrack). A bottle of extra special arrack costs more than Rs 4000 today. People will purchase and consume liquor if the price of a bottle is affordable. It is possible to sell a bottle of extra special arrack at Rs 2500,’ he said.”
“Sri Lanka Cracks Down on Alcohol Tax Defaulters”
News First reports:
“The Government of Sri Lanka has issued a new gazette notification revising the procedures for excise tax payments and fee collections related to alcohol production.The notification, issued by President Anura Kumara Dissanayake in his capacity as the Minister of Finance and Economic Development, comes into immediate effect from today.
“Under the revised regulations, all licensed alcohol manufacturers are now required to settle their excise tax dues on or before the stipulated deadline, in accordance with Section 22 of the Excise Ordinance.Failure to do so within 30 days of the due date will result in the suspension of the bottling license.Furthermore, if the outstanding tax or fees remain unpaid for more than 90 days, all licenses held by the defaulter will be suspended.”
Assessment
MP Chamara Sampath Dassanayake told Parliament that the government should lower the price of arrack so people could “afford to consume liquor” and thereby generate higher tax revenue. This claim reflects a common alcohol industry talking point that confuses public health with sales volume. Taxation on alcohol is designed both to raise funds and to prevent harm and reduce societal costs; increasing consumption to meet fiscal targets undermines that purpose and shifts social and health costs back onto the public.
Meanwhile, the government has taken concrete steps to strengthen the system that collects these revenues. A new presidential gazette now requires licensed manufacturers to pay excise taxes promptly, with strict penalties for non-payment. This reform comes after years of corruption allegations within the alcohol tax system.