From Daily News
http://www.dailynews.lk/2005/08/05/Editorial.htm
The Excise Commissioner announced on Wednesday that his Department was on course to reach its targeted revenue of Rs.17,500 million for 2005. Along with Customs and Inland Revenue, Excise is one of main sources of Government income.
The Department’s Chief and officers must be commended for striving to reach the projected revenue targets and fearlessly pursuing excise law violators. The Excise Chief has disclosed that more than 50,000 detections would be made this year, which translates into a considerable slice of revenue - the Department earned Rs.88 million from fines last year alone.
The Department has been very much in the news during the past few days, thanks largely to the much-publicised raids on night clubs, restaurants and hotels which used to openly violate excise laws.
Incidentally, we are told that there is nothing called a ‘night club’ in Excise parlance. But these night spots have become hotbeds for a host of social evils, including drug distribution, binge drinking sessions and prostitution. The recent Royal Park murder case exposed sordid details of Colombo’s nightlife and renewed calls for tighter controls on these establishments.
The Department has acted swiftly to stem the rot. Following lightning raids, it has suspended licences issued to 18 night spots which engaged in several offences including serving liquor to minors, shortchanging tipplers and keeping the bar open after the stipulated closing hours. The Police and the Narcotics Bureau will have to intensify investigations into other goings-on such as prostitution and drug peddling.
According to the Excise Department, Sri Lanka has more than 2,900 liquor sales outlets and around 100 licences are issued annually. This is not surprising since we are among the ‘top ten’ hard liquor consuming countries. However, it is well known that most so-called ‘wine stores’ cheat their customers by selling adulterated liquor.
In this context, giving liquor permits to supermarkets was a wise move from the consumers’ point of view as they are highly unlikely to engage in such shady practices.
There is another aspect to which policymakers have hardly paid any attention. The booming illicit liquor industry rakes in millions of rupees monthly, but not a cent goes to the Exchequer. It is no secret that some politicians and law enforcement personnel are intimately involved in this business.
Many have pointed out that the high prices of legal liquor have driven tipplers to Kasippu, which seems to be freely available in every village and town. While it is true that the high taxes associated with legal liquor contribute substantially to the coffers, little thought is given to health costs arising from the liberal availability and use of moonshine.
There have been suggestions to reduce taxes on legal alcohol to discourage the consumption of illicit brews. Such pleas have generally been disregarded by revenue-conscious excise authorities. The other suggestion is even more controversial - making kasippu legal and therefore, taxable. These are matters that have to be weighed carefully by the authorities, considering a variety of factors including cultural sensitivities.
Indeed, our cultural and religious norms should help prevent addiction to alcohol in the first place. School teachers and religious leaders have a major role to play in veering the young generation away from Bacchus. In the meantime, strict enforcement of laws relating to alcohol use is vital. The Excise Department and the Police must be strengthened and given all facilities to achieve this objective.
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