Following the tax hike, illicit liquor consumption, specifically ‘Kasippu,’ surged from 19% to 30%, according to Excise Department Commissioner General M.J. Gunasiri.
Addressing the media, he noted that the tax increase led to a rapid rise in alcohol prices, which coincided with an influx of illegal liquor into the market.
As the third largest department for generating government revenue, the department aims to collect Rs. 232 billion this year, as stated in the 2024 budget proposal.
The Commissioner General pointed out that the issuance of liquor permits by the government was extremely limited.
“It is astonishing that no liquor permits were issued by the government in certain districts. In these districts, people must travel at least 30 to 40 kilometres to find a government-permitted liquor store. Yet, individuals selling illicit liquor continue to operate without restriction in these areas,” he remarked.
By July 31, 2024, Rs. 122 billion had been collected as government revenue, with another Rs. 110 billion needed to meet the target.
The department plans to collect Rs. 2,000 million this year by issuing liquor licenses and has collected Rs. 1,750 million so far.
