From history’s highest revenue target of Rs.217Bn Expected Excise revenue drop by 35% in first two months of 2023

By Kurulu Koojana Kariyakarawana 

Having the highest annual revenue target of Rs.217 billion in history, the Department of Excise has experienced a tax revenue drop of 35 per cent in the first two months of this year thus far, the Excise sources said. 

In accordance with the annual revenue target of Rs.217 billion for the year 2023, which is the highest in the department’s history, the Excise tax revenue has dropped by 35% during January and February. 

Department’s spokesperson Excise Commissioner Kapila Kumarasinghe told the Daily Mirror yesterday that they have managed to earn only 65 per cent of the estimated or rather the expected revenue target for this year. 

He said several reasons would have affected this figure, including three recent price hikes of alcoholic beverages, two owing to the excessive expenses on raw materials and also increasing of the Excise tax imposed by the government. 

If this continues to be, it would be tricky to meet the expected highest revenue target for this year as imposed by the Ministry of Finance, the spokesperson said.   The authorities suspect a significant drop in consumption owing to the exorbitant prices of liquor had led to this situation.