Legal liquor demand drops by about 30 percent, COPF reveals

It was revealed at the Committee on Public Finance (COPF) that the demand for liquor had decreased by about 30% due to the recent increase in the price of liquor and the decrease in the income of the people.

This was revealed at a meeting of the Committee on Public Finance chaired by Anura Priyadarshana Yapa, Member of Parliament, recently (20).

Officials representing several institutions were contacted online to discuss plans to increase government revenue. Accordingly, officials representing the Ministry of Finance, Economic Stabilisation and National Policies, the Inland Revenue Department, the Sri Lanka Excise Department and the Sri Lanka Customs were contacted online.

The officials said that there were several problems in the Sri Lanka Excise Department reaching the target revenue due to the limited quantity of ethanol available for the production of liquor, limited number of diesel and other fuel and distribution problems. They also pointed out that the demand for alcohol had decreased by about 30% due to the increase in the price of alcohol and the economic hardships faced by the people.

It was also stated that due to the recent price hikes, production of illicit liquor had increased.

The projected revenue of the Inland Revenue Department and its current situation were also discussed. Leader of the Opposition Sajith Premadasa was also present and discussed with the officials how to change tax policies and take steps to improve tax administration.

In addition, a detailed discussion had been held on the revenue expected to be obtained by the Excise Department at the end of this year.

Minister Nalin Fernando, Members of Parliament (Dr.) Harsha de Silva, Anupa Pasqual and (Dr.) Kavinda Heshan Jayawardana also participated in the Committee session.