Despite the Government temperance programme “Mathata Thitha”, the production of hard and soft liquor has increased by 12 per cent and 30 per cent respectively during the first five months of this year compared to the same period in 2010, according to the mid-year fiscal position report for 2011 presented to Parliament by the Ministry of Finance and Planning.
Due to this as well as the increase in excise duty on liquor, the revenue from liquor sales increased by 59 per cent to Rs.22,725 million between January and May, the Report said. In the same period in 2010, the revenue was Rs.14, 257 million.
Revenue from excise duty on cigarettes and tobacco generated Rs.19,845 million during the same period as compared to Rs.15,663 million in the first six months of 2010 mainly due to opening up of new markets in the Northern and Eastern Provinces as well as due to an increase in excise duty on cigarettes in 2010, it said.
Overall the revenue from excise duty on liquor, cigarettes and tobacco, petroleum products, motor vehicles and other items had generated Rs.70,758 million between January and May 2011, showing an increase of 60 per cent over the previous year.
Excise duty showed the largest growth of around 60 per cent as compared to revenue performance between January and May, 2010 while import duty grew by around 43 per cent, the Ports and Airport Levy by 37 per cent, Income tax by around 21 per cent and the Value Added Tax by around 10 per cent.
According to the Report, Government revenue between January and May 2011 amounted to Rs. 358,266 million showing an increase of 19.8 per cent over the corresponding period in 2010.
This enhanced performance was attributed to better overall performance in domestic economic activities, and an increase in imports which contributed to the growth in revenue collection.
However total non-tax revenue during the same period declined marginally from Rs. 40,770 million in 2010 to Rs. 38,502 million.
Profits and dividends from State banks, Airport and Aviation Services (Sri Lanka) Ltd., and the Telecommunication Regulatory Authority (TRC) as well as a transfer by the Central Bank of Rs. 9,000 million of profits were the main contributors to the non-tax revenue generated during the period, the Report added. |
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