Effective from February 1, the Ministry of Finance in Sri Lanka has unveiled revised annual excise license fees, encompassing taverns and liquor retail outlets, altering the financial landscape for businesses in this sector.
While the initial fee of Rs. 25 million for new taverns remains unchanged, the Annual Tavern License fee has been significantly reduced, now standing at Rs. 2 million instead of the previous Rs. 2.5 million.
Furthermore, the license fees for specific activities have undergone notable reductions: the bottling of coconut toddy saw a decrease from Rs. 10 million to Rs. 1.5 million, and palmyra toddy bottling now incurs a fee of Rs. 500,000, down from the previous Rs. 10 million.
Manufacturers of vinegar also benefit from this revision, as the license fee is reduced from Rs. 2.5 million to Rs. 500,000.
In the retail sector, significant adjustments have been made. The Retail License for Liquor in Municipal Areas has been reduced from Rs. 15 million to Rs. 1 million. In Urban Council areas, the license fee now stands at Rs. 800,000, down from Rs. 12.5 million. Similarly, in all other areas, the license fee has been reduced from Rs. 10 million to Rs. 600,000.
This move by the Ministry of Finance is anticipated to have a positive impact on businesses in the liquor industry, providing them with a more favorable financial environment amidst changing economic dynamics.
