DCSL
Steady Growth in Excise Revenue
From January to April 2024, excise duty collections on liquor exhibited a robust increase, reaching Rs. 70 billion. This marks a 20.7% rise from the same period in 2023, which collected Rs. 58 billion.
Record high excise duty drives revenue
According to the Ministry of Finance this was mainly driven by the indexation of excise duty to inflation, an increase in excise duty rates by 14% percent on January 1, 2024, and the revision of annual excise license fees with effect from January 12, 2024. Liquor duty on coconut processed/Molasses arrack (Rs.absolute litre) was raised to Rs.7,320 per litre in January 2024 from Rs.6,420 in July 2023 and Rs. 5,350 in January 2023.
Production continues downward trend
Total liquor production (hard and malt liquor) declined 11.1% to 10.7 million absolute litres in the first four months of 2024 compared to 12.1 million absolute litres in the same period of 2023. Revenue from hard liquor increased 9.8% to Rs. 43.5 billion in the in 2024, compared to Rs. 39.7 billion in the same period of 2023. Revenue collection from malt liquor increased significantly by 43.9% to Rs. 25.2 billion in the first four months of 2024, compared to Rs. 17.5 billion in the same period of 2023.
The realisation of the excise duty collection on liquor in the first four months of 2024 was 30.5% of the total estimated revenue in 2024.
Excise duty is the third largest tax revenue contributer to the government's tax revenue contributing roughly 15%, after Income taxes and VAT.
Last Updated September 2024
Steady Growth in Excise Revenue
From January to April 2024, excise duty collections on liquor exhibited a robust increase, reaching Rs. 70 billion. This marks a 20.7% rise from the same period in 2023, which collected Rs. 58 billion.
Record high excise duty drives revenue
According to the Ministry of Finance this was mainly driven by the indexation of excise duty to inflation, an increase in excise duty rates by 14% percent on January 1, 2024, and the revision of annual excise license fees with effect from January 12, 2024. Liquor duty on coconut processed/Molasses arrack (Rs.absolute litre) was raised to Rs.7,320 per litre in January 2024 from Rs.6,420 in July 2023 and Rs. 5,350 in January 2023.
Production continues downward trend
Total liquor production (hard and malt liquor) declined 11.1% to 10.7 million absolute litres in the first four months of 2024 compared to 12.1 million absolute litres in the same period of 2023. Revenue from hard liquor increased 9.8% to Rs. 43.5 billion in the in 2024, compared to Rs. 39.7 billion in the same period of 2023. Revenue collection from malt liquor increased significantly by 43.9% to Rs. 25.2 billion in the first four months of 2024, compared to Rs. 17.5 billion in the same period of 2023.
The realisation of the excise duty collection on liquor in the first four months of 2024 was 30.5% of the total estimated revenue in 2024.
Excise duty is the third largest tax revenue contributer to the government's tax revenue contributing roughly 15%, after Income taxes and VAT.
Last Updated September 2024
Follwiing the VAT rate revision to 18% from 15% at the beginning of the year, excise duties on liquor products were also revised with duties on coconut processed arrack going up by Rs.900/liter to Rs.7320 with malt liquor of more than 5% being levied Rs.5680/liter
From the end of 2022 to date, excise duties on liquor have been increased by almost 64% with the highest duties on foreign spirits, (coconut, palmyrah and molasses) based and special arrack.
Last Updated September 2024