Alcohol Price Hike Boosts Revenue by 20%—Key Government Move

News Today: Finance State Minister Highlights Alcohol Price Impact on Revenue

Finance State Minister Dr. Ranjith Siyambalapitiya addressed Parliament yesterday, highlighting the significant impact of increased alcohol prices on government revenue. He noted that the rise in alcohol prices has not only contributed to a 20% increase in excise tax revenue in the first six months of 2024 compared to the same period last year but has also played a role in reducing alcohol consumption.

During his speech, Dr. Siyambalapitiya shared that in the first half of 2023, 18 million liters of alcohol were produced, generating Rs.83 billion in revenue. However, despite a decrease in production to 16.7 million liters in the first half of 2024, the government earned Rs.100 billion, marking a substantial 20% revenue increase.

Dr. Siyambalapitiya also provided insights into tobacco consumption trends, stating that cigarette use decreased by 41.9% from 2015 to 2022, while tobacco tax revenues surged by 36% during the same period. He emphasized that the government’s strategic approach to taxing harmful products like alcohol and cigarettes has proven effective in both reducing consumption and boosting revenue.

Additionally, the State Minister clarified that the government maintains strict control over the approval of new liquor stores, with only 522 out of 1,635 applications approved in the past two years, primarily for promoting tourism.