4 October 2016 08:05 am
The Ministry sent the following clarification on the news item which Daily Mirror carried on October 3, 2016 under the title “Monks up in Arms against import tax concession on beer’.
This beer manufacturing company in the country which was fully affected by the recent flood has been provided the opportunity to import beer with taxes and other levies applicable to that of locally produced beer.
The manufacturing plant and machinery of M/s Lion Brewery Company at Biyagama was completely damaged due to the recent flood in the area. This company which pays excise and other levies of over Rs.25 billion annually to the government had made a request to the treasury for a tax concession for up to a period of three months.
This company was manufacturing beer locally which was subject to an excise duty of Rs.190 per liter for alcohol volume less than 5 per cent and Rs.315 per litre for alcohol volume more than 5 per cent.
Since their manufacturing plant was fully destroyed they were unable to manufacture beer locally and they could not afford to import and sell the goods at the current market price given the fact that the import duties alone exceed the market price. The company had made a request for a waiver on excise duty and other levies to import consignment required for a period of three months. As of now the all inclusive levies for import of Beer exceeds Rs.700 per liter in addition to CIF cost of Rs.100 per litre. Accordingly, the import cost will exceed the market price compelling the company to give up the production.
Therefore considering all these facets the government in order to match the market price, permitted the company to import beer, required for a period of three months and impose taxes and other levies equal to that of locally manufactured beer at the point of importation instead of import taxes and other levies.
Video by Amantha