The Excise Department has achieved a significant increase in tax revenue in the first five months of 2023, exceeding 98% of its target collection of Rs. 91.2 billion. This marks a positive trend even amidst a decline in alcohol production.
According to Excise Commissioner General M. J. Gunasiri, the department collected Rs. 88.7 billion between January and May 2023. This represents a substantial increase of Rs. 19 billion (28%) compared to the same period in 2022.
While the government raised excise duty by 14% in 2023 and increased liquor taxes by 40% twice in the previous year, Gunasiri emphasizes that these hikes are not the primary driver of the revenue rise.
He attributes the positive performance to improved tax collection efforts. However, Gunasiri acknowledges that the department faced a temporary setback due to an emergency situation in the first week of the year, causing a revenue loss of around Rs. 2 billion as liquor production activities were halted.
Despite this challenge, the Excise Department remains optimistic about exceeding its annual target, especially considering the strong performance in the first half of the year.