The government has announced a six percent increase in taxes on all types of liquor, effective immediately. This move is part of a broader strategy to raise revenue and regulate alcohol consumption.
In addition to the tax hike, Industry Minister Sunil Handunnetti revealed plans to introduce a low-priced, healthier version of arak for alcohol consumers. The new product will reportedly be made from by-products of the Sevanagala and Pelawatte sugar factories, providing an affordable alternative to high-cost alcoholic beverages.
The increase in excise duty will also impact the tobacco industry, with cigarette prices in four categories rising by Rs. 5 to Rs. 10 starting January 11, 2025. The combined measures aim to balance public health considerations with economic objectives.
