Illicit alcohol up 300% as some producers evade tax: State Min. of Finance

State Minister of Finance Ranjith Siyambalapitiya

State Minister of Finance Ranjith Siyambalapitiya on Friday revealed consumption of illicit alcohol in has risen over 300% in recent years, posing grave threats to health and State revenue. 

Quoting figures published by the World Health Organisation, the State Minister said consumption of legally manufactured goods had risen only 50% between 2004 and 2016, but the illicit trade has far outperformed the legal fold.

 The Minister made these revelations at a meeting with Excise Officials. The situation is likely further compounded today due to the excessive rise in cost of living due to the economic crisis. 

“When we say illicit alcohol, it no longer constitutes just moonshine. There are licensed manufacturers too who brew illicit alcohol and market them illegally, which causes significant losses to state revenue. Some manufacturers go to great lengths to withhold paying taxes,” the Minister said. 

Illicit alcohol and artificial toddy retail for as low as Rs. 500 a bottle, whereas a bottle of the cheapest arrack is over Rs. 1,000. Falling income has also pushed many consumers towards cheaper illicit alternatives. Sri Lankans are amongst the highest per capita consumers of alcohol in the world, as per WHO statistics.