NJO objects favours granted to alcohol industry

The National Joint Committee strongly objects to the Fnance Minister’s decision in reducing the price of beer by introduction of new taxation scheme for this alcoholic beverage. This decision has already increased the beer consumption especially among the youth of our nation within the past one month. 

This decision of the Minister of Finance expressed in the budget speech, totally contradicts government policy as envisaged in the “Presidential Task Force for Alcohol and Drug Prevention” which functions directly under President Sirisena. Furthermore, the Finance Minister’s intentions are totally against the principles of the National Alcohol and Tobacco Authority “NATA” and the Yahapalana Government’s pledge to curtail alcohol consumption in Sri Lanka.  

Adding fuel to fire is the bombshell from the Minister of Labour and Trade Union Relations who agreed with the Finance Minister and further requested for reduction in the price of very special “gal arrack” as well! This was suggested as a relief measure to provide “solace” to the manual working class! When these short-sighted and dangerous policies are implemented, Sri Lanka will enter the Guinness’ Book of world records as the first nation to actively promote the consumption of alcohol among its citizens!  

Reduction in the price of beer will only result in increase in production and consumption of the product. It will not reduce consumption of hard liquor and illicit brew or kassippu, as people from different ages and social strata consume these different brews.  

This is amply proved by the previous government’s failed excise policy. In 1996 the Finance Minister in his budget proposals reduced the price of beer considerably. This was introduced as a measure to cut down consumption of hard liquor such as whisky, arrack and reduce the production of illicit brew, kassippu. 

Therefore, the excise policy of the government of 1996 proved to be a total failure and sadly encouraged young boys to drink more beer of higher concentration due to the low cost. The total consumption of beer was 126 million litres in 2015. 

The magnitude of the problem is reflected in the rising incidence of hospital admissions due to alcohol related diseases; rising incidence of road traffic accidents, violence and homicide; rising incidence of sexual abuse and violence against women and children and the deterioration of moral and spiritual values seen all round in our society today. 

If the government is sincere in its efforts to reduce the burden of illicit alcohol in Sri Lanka, the remedy is certainly not legislation to reduce the price of beer or gal arrack. The government must activate the Excise Department to work more efficiently, carry out intensive raids and destroy the kassippu industry as much as possible. Unscrupulous politicians, police officers and excise officers who are on the payroll of kassippu mudalalies must be severely dealt with.   

If the Finance Minister really wishes to reduce the burden of alcohol dependence in Sri Lanka, we suggest that the same taxation on beer should be maintained while the taxation on all varieties of hard liquor should be increased. This will certainly save our countrymen from the scourge of alcohol dependence.