Sri Lanka govt revenue from liquor, cigarettes falls after tax hikes
ECONOMYNEXT – Sri Lankan government revenue generated from liquor and cigarettes fell in the eight months to August 2017 as consumption fell after tax hikes, according to the finance ministry.
Revenue generated from liquor decreased by 5.9 percent to Rs. 73.6 billion in the period owing to lower consumption and drop in liquor production after the increased excise duty rates on liquor products, according to the finance ministry’s Fiscal Management Report – 2018.
Revenue from cigarette products fell by 8.1 percent to Rs. 54.6 billion as production decreased after increased tax rates on cigarettes.
“As a result, revenue collected from excise duty imposed on liquor and cigarettes dropped by 6.9 percent to Rs 128.3 billion in the review period of 2017,” the report said.
Although beer (with alcohol content less than 5%) and wine and sake liquor production increased by 26 percent and 23 percent respectively, hard liquor production decreased by 11 percent.
(COLOMBO, November 15, 2017)