8.3 Mn litres of alcohol consumption cut after tax hike: ADIC

12 January 2025 03:22 pm Views - {{hitsCtrl.values.hits}} 26 Bookmark

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The Alcohol and Drug Information Centre (ADIC) revealed that a 20% excise tax increase on alcohol last year led to a staggering reduction of 8.3 million litres in alcohol consumption while boosting government revenue by Rs. 11.6 billion.

Welcoming the latest hike on alcohol and tobacco taxes, ADIC Executive Director Sampath de Seram said the move is a significant step toward reducing public health risks.

He noted that such measures align with recommendations from the World Health Organization (WHO) to discourage harmful habits like excessive drinking and smoking.

“The latest step is helpful in both ways,” de Seram said, explaining that higher taxes not only reduce consumption but also provide a significant boost to state revenue.

According to ADIC, cigarette sales also saw a sharp decline last year, with volumes dropping by 521.5 million units. Despite this, tax revenue from cigarettes rose by Rs. 7.7 billion, demonstrating the dual benefits of excise tax increases.

However, de Seram urged that such measures be implemented scientifically, factoring in inflation and other economic variables to ensure long-term effectiveness.

Comments - 26

Dusty Dusty Sunday, 12 January 2025 03:43 PM

People are going for local stuff and this does not mean a reduction in consumption................

1 43

Burampi Monday, 13 January 2025 10:03 AM

...and health risks aggravate. So it is better to introduce standardized low cost sealed bottle for the people hard up buying rice needed for a month.

0 5

SLEx Sunday, 12 January 2025 03:48 PM

More like 8.3 million litres of moonshine has been consumed instead. You made Rs 11.6 billion, and you will have to spend 100x that amount in the coming years when the users get sick and seek treatment from Govt. Hospitals.

1 40

Ram P Sunday, 12 January 2025 04:25 PM

The drop in sales would have been met with illicit liquor where government cannot keep track on the sales

1 31

Lk Sunday, 12 January 2025 04:28 PM

Can you put more on cigarettes and alcohol please it will save money in health sectors and it will save lives and it save families and it will be good for all:

22 12

warren Sunday, 12 January 2025 04:55 PM

The answer lies in basic microeconomic theory. Goods like alcohol and cigarettes have inelastic demand, i.e., a percentage increase in the price will result in a lesser percentage decrease in the quantity demanded, leading to an increase in revenue, ceteris paribus. However, the danger here is that alcohol and cigarettes are addictive. No matter how much you increase the prices, people will not stop consuming altogether. This will lead to broader social issues like family issues (people now spending more of their income on these goods, leading to lesser income to spend on other essentials), theft, etc.

1 28

Common citizen Sunday, 12 January 2025 05:12 PM

Welcome. 1. Parents, House wives will be happy 2. Under CLEAN SRILANKA must get rid of all illegal joints making bad liquor using police officers removed from unwanted, retired, not useful old men and women. 3. Must educate school children 4. Replace liquor by doing sports by reducing fees for sports events. 5. Import liquor ONLY for Tourism industry. Please continue to do good work and ignore those who are barking to get votes in future elections which they can't win and you will get maximum seats and in future elections

21 10

Ratanasara Buthgamuwa Sunday, 12 January 2025 09:21 PM

Do you how Al Capone became a problem to the US law Makers by BANNING AKLCOHOL. Do you know that 32 people died at Batticloa consuming illicit arrack.Do you know that at Matara, people fell seriously sick by consuming Methyl alcohol as good arrack was in short supply. The Doctors had to run for BRANDY as an antidote. This Govt seems to be making many silly mistakes.The clean city programme is good, but foolish officers had made it a mockery. People must know ahead what the govt does want replaced.The way it had been handled had created a lot of enemies for the govt. AKD use your brains.

1 3

DOT Sunday, 12 January 2025 05:31 PM

Ok. The full credit goes to the new government. But what have you done on this regard ?

7 7

KEEP GOING GOVT, YOU ARE ON THE RIGHT TRACK Sunday, 12 January 2025 05:34 PM

GOOD DECISION TO INCREASE TAXES IN THESE TWO ITEMS, BENEFITS BOTH WAYS AS STATED.

9 8

Rukman Perera Sunday, 12 January 2025 06:21 PM

But , did the health costs reduce?

2 13

Yohan Sunday, 12 January 2025 07:22 PM

Foolish statement by ADIC Seram. The reduction in 8.3mn means that amount is getting covered by illicit liquor which is no good for the system. Lol

3 24

Raheem Sunday, 12 January 2025 10:56 PM

The WHO and other professionals highlight the harmful effects of alcohol consumption, not just illicit liquor.but industry everytime try to separate legal and illicit liquor.so no doubt if government increase tax, alcohol problems will reduce and government revenue also will increase.(alcohol industry's money makes everything)

5 0

Mahendran Fernando Sunday, 12 January 2025 07:48 PM

Mr de Serem have a small drink and relax

2 20

Jayampathi Sunday, 12 January 2025 09:56 PM

The Director praising the government without a full understanding of the situation on the ground. There is a significant presence of illicit alcohol and cigarettes in the market, which pose substantial health risks to the users and public.

0 3

Ratanasara Buthgamuwa Monday, 13 January 2025 12:57 PM

Damn idiotic act. If the taxes are reduced more duty paid liquor will sell and that benefits the government and the fools who cry against liquor. That idiot at the alcohol bureau should use his head. If the govt want to stop illicit liquor allow people to distill the alcohol they need at home. This is allowed in many developed countries- I mean countries with a good economy. Only limitation they cannot sell the alcohol so made.

0 3

Mohan Sunday, 12 January 2025 10:11 PM

Why don't we stop alcohol and cigarette altogether. It will save a lot of money for the people and the alcohol can instead be used as fuel for vehicles, like in Brazil, which would reduce global warming and save foreign exchange. The reduction in health expenditure, household violence, accidents and crimes committed under the influence of alcohol would be bonus. Drunkards can start bashing me now.

4 1

w wijeratne Sunday, 12 January 2025 11:29 PM

no point incresing the price without controlling illlegal alcohol and cannbis.

1 2

down under Monday, 13 January 2025 03:27 AM

Ideally the government should reduce taxes on beer and encourage people to drink beer instead of the more harmful arrack.

1 4

vdot Monday, 13 January 2025 03:57 AM

One less alcoholic means one little family is safe from the abuse of a brain gone awry .more money to buy basics ..Its sad to see sometimes mothers who are on social security even in affluent countries ,using the benefit to maintain families , selfishly buying expensive cigarettes and bottles of vine.depriving the family of that healthy meal ... ..i remember the time that alcohol producers sponsored sports ..an irony indeed for alcohol is found to be counterproductive to an athlete. ..The government will loose revenue from the big industry no doubt , ..but it will be a saving on the constant demand made to the health sector. Demand by people suffering from the side effects of too much alcohol in their systems the worse is they have found to be the sad state of mind of dementia .

4 1

Sam Monday, 13 January 2025 04:08 AM

Come on Guys. You should reduce Beer price

1 3

Judge Monday, 13 January 2025 05:59 AM

Stupid analysis. More controls and more taxes on things like alcohol are not going to help anyone. Comments like 'only give alcohol to tourists' are equally stupid and baseless. Are we saying tourists drinking alcohol is good, but locals drinking alcohol is bad? what nonsense. Instead, a country has to promote responsible drinking of alcohol, not ban it and tax it left right and centre. Tourists mainly come from developed countries, and how have they been developed; banning and taxing alcohol excessively? SL is a strange country.

0 4

Devinda Monday, 13 January 2025 07:27 AM

Good outcome.

2 0

Sambo Monday, 13 January 2025 07:59 AM

If alcohol and tobacco revenue drops it is you people who will get sick and fall. Can we ever trust that you increase the price for the sake of the people's health.

0 1

[email protected] Monday, 13 January 2025 10:39 PM

Is thisADIC a govt. body whoes salaries are paid by the tax payers money? This fool doesn't know even the reduction is due to people are switching to illicit liquor.. Switching from tax paid cigarettes to Beedee.

0 1

A Concerned Citizen Wednesday, 15 January 2025 08:42 AM

Is the NPP Government so naive not to understand, that means the Kasippu consumption has risen by 8.3 Mn Litres?

0 0

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