(COLOMBO) – Following staggering tax hikes on legal alcohol products producers of illicit alcohol are having a field day, Sri Lanka’s Excise Department Commissioner General M.J. Gunasiri conceded on Wednesday.
He said that according to surveys the sale of illicit liquor known locally as ‘Kasippu’ has risen from 19 percent to 30 percent during the first quarter of the present year and it is a disturbing trend as the State coffers are pushed into the doldrums.
He said that following the tax increase, the price of licensed alcohol products soared rapidly, leading to the entry of illegal liquor into the market.
As the third main department for generating Government revenue, the department aims to collect Rs. 232 billion this year, according to the 2024 budget proposal.
The Commissioner General also highlighted that the issuing of liquor permits by the Government was also extremely limited.
“It is astonishing that no liquor permits were issued by the Government in certain rural districts. In these areas, people have to travel at least 30 to 40 kilometres to find a Government-permitted liquor store. Yet, individuals selling illicit liquor continue to operate without restriction in these areas,” he said.
