The Ministry of Finance has announced a significant hike in excise duties on liquor and cigarettes, effective from midnight on January 10, 2025. This measure, directed by President Anura Kumara Dissanayake in his role as Minister of Finance, Planning, and Economic Development, is set to raise liquor prices by approximately 6% starting tomorrow, January 11.
Excise Duty Adjustments on Liquor
The new directive outlines increased excise duties on various types of liquor as follows:
- Special Arrack: Rs. 7,244.00 per litre of alcohol.
- Molasses, Palmyrah, Coconut, and Processed Arrack: Rs. 7,752.00 per litre.
- Country-made “Foreign” Spirits: Rs. 7,969.00 per litre.
- Malt Liquor (≤ 5% Alcohol): Rs. 5,735.00 per litre.
- Malt Liquor (> 5% Alcohol): Rs. 6,015.00 per litre.
- Non-distilled Liquors (excluding toddy and cereal-based liquors): Rs. 5,735.00 per litre.
- Locally-sourced Plant/Animal Milk-based Liquors (≤ 18% Alcohol): Rs. 1,567.00 per litre.
- Country-made Milk Punch: Rs. 3,982.00 per litre.
- Country-made Cider (≤ 4% Alcohol): Rs. 4,347.00 per litre.
Exemptions and Clarifications
- No duties will be levied on exported liquors.
- Malt liquor duties (categories 4 and 5) are exempt for Diplomatic Missions when paid from foreign accounts.
Additionally, the Excise Notification No. 04/2023 published on December 31, 2023, has been rescinded.
Cigarette Price Increase
The Ceylon Tobacco Company (CTC) has confirmed a rise in cigarette prices in response to the excise duty hike. Prices have been increased by Rs. 05 and Rs. 10 per stick across four categories.
These measures are part of broader efforts to boost government revenue and discourage the consumption of alcohol and tobacco products.
