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Last Updated : 2024-04-20 00:00:00
The Sri Lanka Medical Association (SLMA), the national medical association in Sri Lanka, has written to the Finance Minister with regard to the Budget Proposal for the Appropriation Bill 2018. The statement signed by the President of the SLMA Professor Chandrika Wijeyaratne under the heading ‘The Tax on Alcohol and Tobacco Products and the availability of Alcohol Products’ states as follows:
In its Budget proposal for the Appropriation Bill 2018, the Sri Lanka Medical Association says that prices of cigarettes and alcohol should be increased
No evidence anywhere in the world that tourists visit specific countries to consume alcohol; Even if it was the case, Sri Lanka should surely not aspire to be one of them
“The Expert Committee on Tobacco, Alcohol and Illicit Drugs of the Sri Lanka Medical Association (SLMA) recommends that the taxation and price of tobacco and alcohol products should be increased this year to further reduce the affordability of these products.”
One important consideration that is usually overlooked is that the majority of the adult population in Sri Lanka does not use tobacco or alcohol. Over 85% of adults do not smoke and over 80% of adults do not consume alcohol, according to the statistics of the Ministry of Health.
A study by the National Authority on Tobacco and Alcohol (NATA), SLMA and the World Health Organization (WHO) showed that the annual economic cost of tobacco and alcohol use was at least Rupees 209 billion in Sri Lanka. Therefore, in this case, a minority habit causes extensive economic and social harm to the entire population of the country. The only beneficiaries of this situation are the industries that produce and market these products.
The Expert Committee recommends that the price of such products should increase in view of the following reasons:
There is no evidence anywhere that tourists visit specific countries to consume alcohol. Even if it was the case...should surely not aspire to be one of them... The “tourist industry” is another bogey by the industry, which seems to have misled several policy makers.
It has also been recently announced in Parliament that the Ministry of Tourism was seeking the relaxation of laws restricting the availability of alcohol products, to make such products easily available for “tourists”,
There is no evidence anywhere in the world that tourists visit specific countries to consume alcohol. Even if it was the case, Sri Lanka should surely not aspire to be one of them.
The “tourist industry” is another bogey by the industry, which seems to have misled several policy makers. The effect of increasing availability of alcohol will simply increase the use of alcohol by Sri Lankans, not tourists.
There is ample evidence that increasing the availability of alcohol will not only increase its use, but also escalate social problems, such as domestic violence and other forms of violence and road traffic accidents.
The effects mentioned on the tourism industry seem irrelevant when it comes to the strata of tourists, who in fact bring in foreign currency. These tourists will anyhow stay in star class hotels and do have access to alcoholic beverages.
Hence, we strongly recommend increasing the tax on alcohol and tobacco products, taking into account inflation and affordability. The SLMA also requests the Government of Sri Lanka not to initiate any steps towards relaxing the licensing and other laws which will enable alcohol to be available and accessible easily.
Kingsley Wijesinhe Friday, 27 October 2017 07:56 PM
The good doctors seem to be living in cloud cuckoo land. Any reasonably competent economist will tell you that the demand for addictive substances like alcohol is relatively inelastic, and is not price sensitive. If legal alcohol becomes prohibitively expensive , addicts will drink illegal brews that are even more detrimental to health. The only people who will be benefited are the kasippu mudalalis, and corrupt police and excise officers who are paid to look the other way.The argument that tourists do not visit specific countries in order to drink alcohol is quite true. What is also true is that few tourists visit countries where alcohol is not available. The doctors have cited "very strong evidence" in support of their proposal. What are the studies on which this "strong evidence" is based?Incidentally, I do not have a personal interest in the matter as I don't drink, nor do I own shares in a liquor company, nor do I work for one.
Kingsley Wijesinhe Friday, 27 October 2017 07:57 PM
The good doctors seem to be living in cloud cuckoo land. Any reasonably competent economist will tell you that the demand for addictive substances like alcohol is relatively inelastic, and is not price sensitive. If legal alcohol becomes prohibitively expensive , addicts will drink illegal brews that are even more detrimental to health. The only people who will be benefited are the kasippu mudalalis, and corrupt police and excise officers who are paid to look the other way.The argument that tourists do not visit specific countries in order to drink alcohol is quite true. What is also true is that few tourists visit countries where alcohol is not available. The doctors have cited "very strong evidence" in support of their proposal. What are the studies on which this "strong evidence" is based?Incidentally, I do not have a personal interest in the matter as I don't drink, nor do I own shares in a liquor company, nor do I work for one.
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