report in Daily FT, Jan 4, 2023
Prices of alcohol and cigarettes have been increased following upward revision in Excise duties as the Government scrambles to boost State revenue.
Excise duty on all varieties of liquor, wines, beer etc. was increased by 20% and duty on cigarettes increased by 20%, State Minister of Finance Ranjith Siyambalapitiya said in a Twitter message.
Due to the 20% increase of excise duty on liquor, the prices of a bottle of 750ml special arrack will be increased by Rs. 206, locally brewed foreign liquor by Rs. 266, beer (vol. 4.8% – 625ml) by Rs. 21 and beer (vol. 8.8% – 625ml) by Rs. 39.
A Rs. 90 cigarette expected to cost Rs. 105, Rs. 85 cigarette expected to cost Rs. 100, Rs. 70 cigarette expected to cost Rs. 80, Rs. 60 cigarette expected to cost Rs. 70, Rs. 15 cigarette expected to cost Rs. 24.
In another revenue enhancing move, the Finance Ministry also announced custom duty of Octane 92 and Octane 95 petrol increased to Rs. 52 per litre from the present rate of Rs. 27 and Super Diesel increased from Rs. 13 to Rs. 38.
Separately an excise duty of Rs. 25 will be imposed on 1-litre of imported mineral water and aerated water.
The Finance Ministry also said the luxury tax on motor vehicles, which was gazetted on 31 October 2019, will be effective from 1 January 2023.
https://www.ft.lk/front-page/Booze-cigarettes-get-expensive-as-Govt-gets-hungrier-for-revenue/44-743769
