Clear indication of Mathata Thitha policy recording progress:

Alcohol consumption, production decrease

Lakshmi de Silva

The consumption and production of alcohol had decreased by 9.5 percent and 9.42 percent respectively compared to 2007 and it was a clear indication that the Mathata Thitha policy program of the Mahinda Chinthana was in progress not only by increasing the direct taxes but also other disincentives contributing to the reduction in the consumption and production, State Revenue Minister Ranjith Siyambalapitiya said at a press conference at his Ministry yesterday.

He said giving liquor permits to supporters of governments after elections was a norm in the past of every government that came to power but President Mahinda Rajapaksa acting according to his mandate to discourage the alcohol consumption did not continue that tradition. During 2003 about 150 permits were given to open new liquor shops.

But from 2005 there were a few permits given only on the direction of court orders or for new tourist hotels approved by the Tourist Board.

The increased direct taxes on liquor – hard liquor like arrack was 44 percent, locally manufactured foreign varieties of liquor like brandy 34 percent, alcoholic beverages like beer with less than 5 percent content of alcohol 28 percent.

Beverages with over 5 percent alcohol was taxed 20 percent and wine 69 percent, he noted.

The total production of arrack in 2007 was 46.97 million litres, it decreased to 42.47 million litres in 2008 - a decrease of 9.5 percent, he also said.

Commissioner General of Excise W. Hapuarachchi who was also associated with the press conference said there were 56,000 raids conducted on illicit liquor brewers and sellers and a special research was being conducted by the University of Colombo on illegal liquor production in the country and the research report was expected in the near future.

There was also a reduction in the distribution and consumption of drugs and 7,650 cases have been filed in courts against drug offenders.

The former Excise Office, Chavakachcheri in the North that was closed down due to terrorism would be reopened on Saturday (26) to strengthen the vigilance on liquor and drugs in the North, he said.