Sri Lanka hikes Excise Duty on liquor by 20%

Sri Lanka
By Editor_1
-veriteresearch.org

COLOMBO – A 20% increase in the Excise Duty on liquor will go into effect from midnight Tuesday (3), State Minister of Finance Ranjith Siyambalapitiya said.

Duty on cigarettes had already increased on January 1.

“Duty on all varieties of liquor, wines and beer will be increased by 20% from midnight today,” Minister Siyambalapitiya said.

He had previously said that around 75% of Sri Lanka’s liquor prices and 75% for cigarettes comprised up taxes, 65 to75% of the price of cigarettes was made up on taxes.

The  increase of Excise Duty will see the  price of a 750ml bottle Special Arrak increased by Rs 206, locally brewed foreign liquor by Rs 266, beer (Vol. 4.8% – 625ml) by Rs. 21 and beer (Vol. 8.8% – 625ml) by Rs 39.

Sri Lanka has high levels of taxes on legal alcohol, unwittingly encouraging the production of moonshine.

-EN/ENCL

Editor_1
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