In a recent development, the Finance Ministry has issued a gazette notification, effective from today (January 01), announcing a substantial increase in Excise Duty on various liquor categories.
Accordingly, special Arrack will see a notable hike of Rs. 840 per litre, while Palmyrah, Coconut, and processed Arrack will witness an increase of Rs. 900 per litre of alcohol.
This decision is anticipated to have a direct impact on liquor prices as the Excise Duty hike coincides with a rise in the Value Added Tax (VAT) to 18%. As a result, consumers can expect an immediate escalation in the cost of their preferred alcoholic beverages.
The Distilleries Company of Sri Lanka PLC (DCSL) has already made a public announcement regarding the impending price adjustments.
Effective January 01, 2024, all DCSL liquor brands will experience price hikes, with increases of Rs. 90, Rs. 50, and Rs. 20 per 750ml, 375ml, and 180ml, respectively.
These changes are poised to impact both producers and consumers alike, prompting discussions on the broader implications for the liquor industry and the economy at large.
