Business Times

Excise labels and security tags enhance public policy, increase revenue

Letter

The Sri Lankan media recently issued dire warnings on the increased consumption of alcohol in the country. Inevitably, the Sri Lankan population and most educators would probably agree that drinking, especially problem drinking, represents a complex, social issue fraught with cultural do's and don'ts, opinions, and values. To solve serious social problems such as substance abuse, often-times simplistic solutions are initiated, regardless of their effectiveness.

Any new legislation should mandate that warning labels which identify the possible health consequences of drinking be placed on alcoholic beverage containers. Additionally, the Government should present an overall picture of concern for its people while simultaneously ensuring the collection of Excise revenue, without damaging its credibility.

Such warning labels will help decrease alcohol abuse and the sale of spurious liquor by ensuring that nothing but the authentic product reaches the market. The labels are designed to protect the consumer and ensure the administration's revenue at a very low cost.

In India, where these labels are currently in use, the Excise Department collects the requirement of labels from each distillery, procures the required quantity from the press and provides these labels to the distilleries in a controlled and accounted number. Each distillery then affixes a label on every bottle that leaves their premises, under the supervision of the Excise Department. The labeled bottles then reach the retail markets.

These warning labels could be construed as a symbolic gesture in support of alcohol abuse prevention and education, or they can be seen as an effective public health technique tempered to ascertain the collection of Excise revenue.

Because these labels cannot be duplicated, detection of bottles for which Excise duty has not been paid can be easily identified. Effective enforcement will, over a period of time, end circulation of spurious liquor and optimize Excise revenue to the government. The government could undoubtedly earn social applause with this initiative. Such systems require information available on coding, for example - Month Code, Colour Codification and Alfa Code complete with the various colours to be used.

This will clearly classify the bottles produced within the country and those imported from other countries. The primary colours used are to be maintained throughout the year to ensure stability and easy identification.

This could be a start for public policy to begin to solve complex social problems, or this policy could primarily be a symbolic effort in support of reducing alcohol abuse and increasing Excise revenue in the country.

I. Kevitiyagala, Colombo.

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