The Excise Department revenue has increased by Rs. 10 billion, as a result of the new fool-proof sticker initiated in July, Acting Finance Minister Ranjith Siyambalapitiya said yesterday.

“Although the consumption of alcohol has decreased by 20% to 30% due to the increase in the cost of living, about 65% of the expected excise revenue for this year has been achieved,” he said during an inspection visit to the Excise Department yesterday, whilst appreciating officials for their efforts taken to achieve the set targets amidst challenging economic situations.

The Excise Department warned that licenses of liquor traders who fail to comply with the relevant regulations of the fool-proof sticker scheme under the Excise Notification No. 01/2021, will be cancelled.

The fool-proof liquor sticker on locally manufactured alcohol was first proposed last year to be made mandatory from 1 January due to strong industry protests, it was pushed from 1 April to 1 July.

Noting that raising State revenue is a matter which should be done very carefully, he said the taxes must only be collected from the groups that are legally liable to pay tax and evade their responsibilities.

“We all know that there are many people who are legally liable to pay taxes but are not paying them. There are multiple factors for why we collect taxes. Some of the taxes have a broader social philosophy that goes beyond tax revenue.

Given the high taxes as well as the health disadvantages, we are expecting a drop in alcohol consumption in the future. No matter how much income you get, it will never be promoted,” Siyambalapitiya said.

He pointed out that of over 6.8 million families, 1.7 million families are dependent on Samurdhi, whilst 2.6 million are waiting for it.

“Therefore 90% food inflation is a concerning situation compared to the overall picture,” he added. Generally, the Government receives around 75% of the tax on alcohol and about 65% to 75% tax on cigarettes.

“All parties and Opposition parties in the Parliament have personally suggested increasing the tax on alcohol and cigarettes to 90%,” he added.

Minister Siyambalapitiya also said they were exploring how palmyra coconut and palm industries could be improved to a level of exports.Excise Commissioner General M.J. Gunasiri and a group of senior officials also participated.

President Ranil Wickremesinghe met with the Prime Minister of Singapore Lee Hsien Loong in Tokyo recently and pledged to implement Free Trade Agreement with Singapore

During the discussions, President Wickremesinghe informed the Singaporean Prime Minister that an international trade office was being established in the President’s office.

He also explained that his priority was to bring into effect the Free Trade Agreement with Singapore.

Prime Minister Lee Hsien Loong welcomed the news, and stated that Singapore was looking forward to investing in Sri Lanka once again.

President Wickremesinghe invited the Singaporean Prime Minister to visit Sri Lanka next year when the country celebrates its 75th Independence anniversary.

The Sri Lanka-Singapore Free Trade Agreement was signed in 2018 when Wickremesinghe was Prime Minister.

The Government led by Gotabaya Rajapaksa had raised concerns over the FTA and had proposed several amendments.

Sri Lanka signed the Sri Lanka – Singapore Free Trade Agreement (SLSFTA) on 23 January 2018 and the Agreement was brought into operation with effect from 1 May 2018.

In view of the impact of the contents of this Agreement and the potential that Government states it offers to boost domestic trade, the Ceylon Chamber of Commerce Chamber decided to set out its perspectives on the significant features of the Agreement.

In finalizing this brief a consultative process was adopted with adequate opportunities given to members of the Chamber to submit views.

The Ceylon Chamber of Commerce sees the Agreement positively in the context of enhancing Sri Lanka’s trade initiatives and deepening its current relations with the economies in the Association of Southeast Asian Nations (ASEAN).

ASEAN is a growing trading region with links to global production networks that Sri Lanka could have the potential to integrate with to diversify its exports basket and attract Foreign Direct Investment.

Considering that the Agreement is comprehensive in its coverage, there exists opportunities for Sri Lankan businesses to derive benefits from this Agreement by leveraging on the synergies it is expected to bring between trade, investment and services.

It is worthy to note that consequent to the signing of the Agreement, there have been numerous delegations that have visited the country from Singapore to explore potential investment opportunities.

The Chamber was an active stakeholder participant whenever consultations and meetings were convened by the Ministry of Development Strategies and International Trade (MoDSIT) and with the negotiating team of SLSFTA.

The Chamber also assisted in the consultation process by making timely submissions and convening sector specific consultations on trade-in-service for its members, in maritime, construction, tourism and IT sectors, in 2017.