• Increase in excise tariffs contributes to decreased demand for excise articles
• Dept. meets 98% of revenue target for first four months of 2024
• Tough stance against beedi manufacturers failing to comply with tax 

The Excise Department has recorded a 26% Year-on-Year (YoY) revenue increase in comparison to the equivalent period in 2023 despite low production volumes. 

Speaking to The Sunday Morning Business, Commissioner General of Excise M.J. Gunasiri stated that despite the decrease in demand for excise articles, the department had successfully recorded a 26% YoY increase in excise duties collected during the first four months of this year in comparison to the corresponding period in 2023. 

He attributed this to the increase in excise tariffs and the tax administration efforts of the department. 

Gunasiri revealed that the sharp increase in excise tariffs over the past two years, with a 15% increase in prices in 2024 itself, had adversely impacted the demand for excise articles. As a result, the production volumes of all excise articles continue to trail behind the volumes recorded in 2022.

“We still haven’t reached the production volumes of 2022. However, the price increase and our actions have allowed us to achieve a 26% YoY revenue increase in the first four months of 2024 when compared to 2023,” he stated. 

He noted that when comparing the revenue earned by the Excise Department during the first four months of 2024 to targets set at the beginning of this year, the department had met 98% of its revenue target.  

He further stated that the department was adopting a hard stance against beedi manufacturers regarding their compliance with excise tax liabilities. 

Moreover, he noted that they had informed all beedi manufacturers that the department’s registration for such manufacturers would be revoked in the event they failed to pay their taxes in a timely manner.

“We will cancel their registration if they don’t pay taxes. If you are not paying taxes, it means you are not manufacturing beedi, so the licence of anyone who isn’t manufacturing will be revoked,” he stated.

Gunasiri further revealed that the Excise Department had commenced issuing transport licences for beedi manufacturers from 1 May, provided that the tax on beedi was paid, considering various issues they had faced with law enforcement whilst transporting products.