Expected Excise revenue drop by 35% in first two months of 2023

20 March 2023 10:38 am - 8 - {{hitsCtrl.values.hits}}

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Having the highest annual revenue target of Rs.217 billion in history, the Department of Excise has experienced a tax revenue drop of 35 per cent in the first two months of this year thus far, the Excise sources said.

In accordance with the annual revenue target of Rs.217 billion for the year 2023, which is the highest in the department’s history, the Excise tax revenue has dropped by 35% during January and February.

Department’s spokesperson Excise Commissioner Kapila Kumarasinghe told the Daily Mirror yesterday that they have managed to earn only 65 per cent of the estimated or rather the expected revenue target for this year.

He said several reasons would have affected this figure, including three recent price hikes of alcoholic beverages, two owing to the excessive expenses on raw materials and also increasing of the Excise tax imposed by the government.

If this continues to be, it would be tricky to meet the expected highest revenue target for this year as imposed by the Ministry of Finance, the spokesperson said. The authorities suspect a significant drop in consumption owing to the exorbitant prices of liquor had led to this situation.(Kurulu Koojana Kariyakarawana)

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Comments - 8

Katheeshan Monday, 20 March 2023 10:55 AM

There should be a prober study before increasing the prices. Normally Bars are at Town areas. So Transport charge also to added to buy a liquor. Transport charge also very high due to fuel price.. So Finally people find another way too illegally. ....... So definitely tax Income will be reduce. Also heath issues will be increase and expenses for health increase. Finally net profit will be reduces.

VJ Monday, 20 March 2023 11:16 AM

Good sign, people are waking up and it makes economic sense to cut down on spirits. Health will improve, the health sector could save what the excise lost.

OLLways break down Monday, 20 March 2023 12:51 PM

No sealed means more Kashiya cheers causing more cronic diseases reducing overALL life expectancy and healthy conditions. There will definitely be even more revenue loss for water and electricity as well.

Chatura D Monday, 20 March 2023 01:37 PM

Has the production volumes dropped? This can be verified by studying Raw material imports as well. Why are they giving assumptions? They should have facts.

Sambo Monday, 20 March 2023 02:03 PM

Go ahead and still increase the price of tobacco and alcohol. There is a limit for everything and you have over stepped it. Who has the money to pay a high price for low quality brew.

Sokrates Monday, 20 March 2023 02:34 PM

In EU countries there is little or no tax on alcohol. That is why there is no moonlighting, illegal alcohol and the crime associated with it. Since there is no black market, the EU countries still generate a large amount of tax revenue simply through VAT. Sri Lanka should take this as an example. The Victorian Excise Ordinance must also be abolished and the free sale of alcohol must be possible without restrictions and licences. This prevents the huge profits from corrupt politicians who are behind every alcohol outlet.

Rudy Hodgson Monday, 20 March 2023 04:35 PM

Leave aside liquor, all major consumer products are catching dust on supermarket shelves. Manufacturers have tried to be smart by reducing the weight from 500g to 400g

Tupac Monday, 20 March 2023 10:03 PM

Wow great newz Ranil can do wonders

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Expected Excise revenue drop by 35% in first two months of 2023

Comments - 8

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