Minister Rajitha calls for tax hike on local arrack in Budget 2019

Health Minister Rajitha Senaratne has insisted that taxes on local arrack must be increased in this year's budget on which a final vote is yet to be taken.

He made this remark while referring to the tax on Special Arrack which remained unchanged in this year's budget proposal. Finance Minister Mangala Samaraweera in the budget had proposed a tax increase on all types of local and foreign liquor except for Special Arrack.

Minister Senaratne opined that this move will encourage people to consume local arrack which could lead to health issues in the future. He also claimed that his ministry would have to incur a heavy expenditure on providing treatment to these people who fall sick.

Accordingly, a proposal suggesting a tax increase on local arrack will be tabled before cabinet this week, he said.

Speaking during a news conference yesterday (Mar 17), the Health Minister said that a USD 200 million loan has been obtained from the World Bank in order to implement mechanisms of preventing non-communicable diseases. On the same lines, he noted that a committee has also been formed within the Health Ministry to address the prevention of these diseases.

While claiming that it was easier to create awareness on this issue among children when compared to adults Mr. Senaratne said that the Education Ministry has provided 150 schools a list of food items that are permitted to be sold in canteens.

Measures would be taken to send this list to the remaining schools, the Minister told reporters during the press briefing.

(Additional reporting by Damith Wickramasekara)