No local alcohol, cigarettes sales at supermarkets
View(s):Sri Lanka’s anti-drinking and anti-smoking lobby must surely be celebrating (with soft drinks!) for, since the past month, local alcohol including beer, and cigarettes have been off the shelves at local supermarkets.
While these products are available at wine stores and other small shops (for cigarettes), alcohol and cigarettes stopped selling at supermarkets since the 2015 budget was presented on October 24 due to a VAT issue.
Both products were removed from the VAT list in the budget. Now manufacturers say they cannot claim what is called “input” VAT and supermarkets are not willing to take on an added burden in the costs, or pass the cost to the consumer. Beer manufacturers say their cost of business has risen by 11 per cent following the budget proposal.
Even though only 8-9 per cent of total beer sales come from supermarkets, beer makers say this is an important market segment and profits would be affected. They have made representations to the authorities without success. Foreign liquor is however available at supermarkets.