Liquor prices over VAT Dept. of Excise has no say over liquor price increase

2 June 2022 10:16 am Views - 130

• The escalation of VAT has an effect not only on the brands of liquor being manufactured but also on the ingredients and raw materials used for the purpose

By Kurulu Koojana Kariyakarawana  

The Department of Excise yesterday said they have no control over the price increase of liquor owing to the escalation of Value Added Tax (VAT) from 8% to 12% from midnight Tuesday.  
Excise Spokesman Commissioner Kapila Kumarasinghe told Daily Mirror the escalation of VAT has an effect not only on the brands of liquor being manufactured but also on the ingredients and raw materials used for the purpose.

Therefore, no authority can decide on a price on alcoholic beverages, but the market leader will usually fix its price first and the rest of the producers will adjust their prices correspondingly.  

 There is no controlled price for liquor in Sri Lanka, he further said.  

However, the most popular basic liquor product of one of the market leaders has been increased up to Rs.2,500, the Daily mirror laearns. 

 

• Prices differ from company to company