News
Big increase in liquor, cigarette prices
View(s):The Government in a surprise pre-budget move increased the price of all alcohol products from seven to 10 per cent while latest statistics show that there has been a steep increase in the production, sale and consumption of alcohol countrywide during thefirst quarter of this year.
The prices of popular products of local arrack were increased by seven per cent while the prices of locally manufactured foreign alcohol beverages such as whisky and brandy were raised by 9.4 per cent, Excise Commissioner General L.K.G. Gunawardene said.
He said there was also a near 30 per cent increase in the prices of beer products depending on the alcohol content.
The Excise duty on molasses and coconut arrack has been increased by Rs. 110 from Rs. 1,485 to 1,595 for a proof litre. Accordingly, the price of a bottle of arrack has been increased by Rs. 60.
The Excise duty on country made foreign liquor has been increased by Rs. 160 for a proof litre from Rs. 1,860. Accordingly, the price of a bottle of foreign liquor has been increased by Rs. 125. Tthe price of a 625ml bottle of less than 5% alcohol beer has been increased by Rs. 25 and the price of a bottle of beer with an alcohol strength of more than 5% has been increased by Rs. 50.
The sudden increase in the prices of alcohol was aimed at generating more revenue for the state coffers while at the same time to discourage consumption in keeping with the Government’s present policy of educating the public on the ill-effects of liquor, the Commissioner said.
Meanwhile there has been a steep increase in the production and sale of alcohol beverages during the first four months of this year when compared with the same period of the previous year. The revenue collected from the first four months of this year from the sale of hard liquor was Rs. 33,505 million — an increase of 32 per cent when compared with Rs. 22,504 million for the same period last year.
Mr. Gunawardene, however, explained that the production and sale of liquor products may have been around the same percentage even during the previous year although it was not recorded owing to the illegal manufacture and sale on a high scale.
He said a series of raids and detections on these illegal operators during the start of this year had forced them out of business and now the true sales were being recorded from the legitimate operators.
The revenue from cigarettes and tobacco also increased by 45 per cent. It rose to Rs. 25,491 million during this same period from Rs. 17, 524 million recorded in the previous year. The revenue from malt liquor (beer products) increased by 37 per cent during the first four months of this year and production rose by 10 per cent.Meanwhile in another unannounced move, the prices of all brands of cigarettes were increased by Rs. 3 each from yesterday.