Govt. issues Gazette increasing excise duty on liquor

Tuesday, 2 January 2024 01:37 - - {{hitsCtrl.values.hits}}

The Government has issued a Gazette notification, increasing the excise duty on liquor from yesterday. Accordingly, the excise duty on special arrack was increased by Rs. 840 per litre and palmyrah, coconut and processed arrack were raised by Rs. 900 per litre of alcohol.

With the concurrent increase in the Value Added Tax (VAT) to 18% that took effect yesterday, an upward revision of the prices was expected.

Last Friday, the Distilleries Company of Sri Lanka PLC (DCSL) announced forthcoming price adjustments for all its liquor products following the imposition of the revised VAT and the increase of the excise duty on liquor from 1 January. These include; a Rs. 90 hike per 750ml, Rs. 50 increase per 375ml and Rs. 20 hike per 180ml.

The related Gazette notification was issued on 31 December with the signature of President Ranil Wickremesinghe, who is also the Finance Minister.

On 11 December 2023, the Parliament approved the VAT (Amendment) Bill and paved the way for the VAT increment from 15% to 18%.