ECONOMYNEXT – Sri Lanka’s Department of Excise has re-instateed a soft alcohol licenses issued to hotels registered with the Sri Lanka Tourism Promotion Bureau (SLTPB), following a court order issued on October 20, the state information office said.
The Excise Department suspended soft alcohol license allowing beer and wine to be sold at registered tourist establishment on October 08, on a earlier interim court order.
“The Commissioner General of Excise has made this order according to an order given by the court regarding the cases 313/2023 and 371/2023 pending in the Court of Appeal,” a statement by the government information department read.
“Thus, Sri Lanka Tourism Development Promotion Authority’s registered hotels, restaurants and travel establishments that provide accommodation and services to tourists operating under the permits issued for the use of soft liquor can use their soft liquor without any hindrance.”
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Earlier this month, MP Mahindananda Aluthgamage said in parliament that the government loses 40 percent in annual alcohol taxes due to a bogus sticker, which helped evade the due tax to be paid for each bottle.
“In a month, between 45-50 million bottles of alcohol – whiskey, arrack, beer and toddy – are released into the market. Within a year, 500 million of these bottles are released. From this, 40 percent of the 500 million bottles are under invoiced, resulting in the government not receiving revenue, Aluthgamage said.
“To stop this, in 2022, the new government brought in a solution to paste stickers on all alcohol bottles. In the first quarter of 2022, the revenue increased by 100 percent, and the excise duty department earned some billions.”
“After three months, a bogus sticker came in and revenues once again fell by 40 percent. After I brought up the issue with the committee on public finance, we asked them why are you not raiding them? Since giving a warning to the Excise Department, they have seized 40,000 bottles.”
“For the past month the Excise Department’s revenue has grown by a billion rupees,” he said. (Colombo/October 23/2023)