President Anura Kumara Dissanayake, in his capacity as the Minister of Finance announced significant revisions to the excise duties on alcohol and cigarettes, which came into effect yesterday, January 11. The excise tax rates will record an increase in the cost of locally produced alcoholic beverages.
The excise duty on special arrack has been raised to Rs. 7,244 per litre, while the tax on molasses, palm, coconut, and seasoned arrack is now set at Rs. 7,752 per litre. Locally produced foreign liquor has also recorded a rise, with the excise duty now at Rs. 7,969 per litre. These revisions impact nine categories of alcohol and have triggered price increases across popular alcoholic beverages.
The price hikes will also affect several types of arrack, with Rock arrack recording a price increase of Rs. 102, now costing Rs. 3,682 per bottle. Coconut arrack and Old arrack recorded prices increases by Rs. 109, reaching Rs. 3,959 and Rs. 4,109 per bottle. The price of Special Old Arrack also went up by Rs. 109, and is now priced at Rs. 4,359 per bottle.
Beer prices have similarly been adjusted, with low-alcohol beer increasing by Rs. 30 per bottle and high-alcohol beer rising by Rs. 40 per bottle. Locally produced foreign whisky has also recorded an increase, with its price rising by Rs. 100 per bottle. Prices for other foreign liquors will vary depending on their alcohol content.
The prices of cigarettes have also been increased from January 11, in line with the excise duty revision on cigarettes, according to the Ceylon Tobacco Company.
The new prices will see increases of Rs. 5 and Rs. 10 per stick under four categories of cigarettes.
