The Alcohol and Drug Information Centre (ADIC) called on the Government and the public to understand the socioeconomic impact of alcohol use and abuse, and not to treat it only as a revenue source for the state.
Following several new proposals which were included in the Budget for 2024 regarding the enhancement and regulation of the excise sector, ADIC Chairman Sampath De Seram told The Daily Morning that every government has become victims of unreliable myths surrounding the increase of government revenue through excise taxes. He stressed that the Government is turning a blind eye to the massive economic loss incurred due to widespread consumption of alcohol and the impact it causes on the social fabric.
De Seram pointed out that the Government has to spend billions in terms of extra money on the country’s health sector in order to prevent the increase of non-communicable diseases which are mainly caused by the use of alcohol and tobacco.
“In the year 2022, the excise revenue from alcohol tax was approximately Rs.165.2 billion. Yet, the ‘Investment Case for Alcohol Control in Sri Lanka’, conducted by the United Nations Development Programme reported that the health and economic loss incurred on the Government due to alcohol use is Rs. 237 billion. Moreover, citizens of our country spend Rs. 590 million per day on beer and arrack and Rs. 380 million per day on cigarettes, which results in a large overall economic burden,” he said.
Citing the observations of ADIC, he criticised the Government, alleging that the Budget for 2024 includes many recommendations that will likely lead to an increase in the initiation rate of alcohol use, and a rise in alcohol consumption and related consequences among the public.
He charged that the proposals in the 2024 Budget are contradictory to previous state policy, and also raised concern about the genuineness of the government-appointed Parliamentary Committee to eradicate the drug issue in the country.
De Seram also noted that flexible opening hours clearly contribute to an overall increase in alcohol consumption due to heightened availability, thereby rendering it a potentially counterproductive strategy.
The ADIC Chair charged that irrespective of whether the product is legal or illicit, alcohol itself is harmful in every aspect. Therefore, the Government should be taking the required steps to reduce overall alcohol consumption in the country.
Presenting Budget 2024, President and Minister of Finance, Economic Stabilisation, and National Policies Ranil Wickremesinghe proposed a tax administration system for the Excise Department, encompassing the implementation of an online licencing system for a more consumer-friendly and efficient regulatory environment, the evaluation of safety features, and the introduction of a new excise permit system.
Several attempts made by The Daily Morning to contact National Authority of Tobacco and Alcohol Chairman Dr. Alan Ludowyke and the Ministry of Finance regarding the new revenue policies and its impact on the state health system proved futile.