Tax hike drives ’Kasippu’ consumption from 19% to 30%

Colombo, August 14 (Daily Mirror) - Following the tax hike, illicit liquor consumption, specifically 'Kasippu,' has surged significantly from 19% to 30%, Excise Department Commissioner General M.J. Gunasiri said.

Addressing the media, he said that following the tax increase, the price of alcohol soared rapidly, coinciding with 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 highlighted that the issuing of liquor permits by the government was extremely limited. 

"It is astonishing that no liquor permits were issued by the government in certain districts. In these districts, 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 remarked.

By July 31, 2024, Rs. 122 billion had been collected as government revenue, and another Rs. 110 billion was needed to meet the target.

The department plans to collect Rs. 2,000 million this year by issuing liquor licenses. So far, Rs. 1,750 million has been collected.