Liquor manufacturers have decided to increase alcohol prices with effect from today (1).
Media Spokesman of the Excise Department Commissioner Kapila Kumarasinghe attributed the decision to the increase in ethanol prices and the hike in the Value Added Tax.
He said VAT was increased from 8 to 12 percent and costs incurred increased significantly as the VAT is charged from manufacturers.
Kumarasinghe said manufacturers can either include the VAT in prices, charge a particular sum, or refrain from charging the VAT from consumers entirely.
He noted that manufacturers do not require the approval of the Excise Department to increase prices as a control price has not been imposed on alcohol.
Kumarasinghe said under such circumstances manufacturers can determine prices adding that the amended price lists however must be submitted to the Excise Department once revised.