Former President Ranil Wickremesinghe announced that Rs. 3.1 billion in revenue was generated over nine months through the issuance of excise licenses, emphasizing that all licenses were issued legally. This information was conveyed through a statement from his office.
The statement detailed significant changes introduced to excise administration and revenue collection policies post-2022.
According to the statement:
Historically, no charges were levied for issuing excise licenses since Sri Lanka’s independence. However, by 2022, the nation faced a severe economic crisis, compounded by a substantial decline in direct tax revenues. Responding to these challenges, the Parliamentary Committee on Ways and Means recommended implementing alternative measures to mitigate the economic downturn.
One of these measures was introducing a fee structure for issuing excise licenses, aimed at bolstering government revenue. The decision was part of broader reforms to enhance excise administration and streamline tax policies.
The 2024 Budget Speech under Paragraph V proposed specific measures, including:
- Improving methods for excise administration.
- Establishing clear guidelines for various types of excise licenses.
- Introducing new criteria for licensing and determining upper limits for licenses.
- Charging administrative fees for excise-related services.
- Increasing license fees based on market demand.
These proposals were incorporated into the budget document, approved by Parliament, and further validated through the passage of a relevant Gazette Notification.
The statement underscores that the revenue generated through this initiative is a critical step in addressing the economic challenges faced by the nation.
