Lion Brewery urges govt. to restore 12% concessionary tax rate on exports
„Says exports are a buffer against inconsistent and unfair policies at home „During FY17/18, Lion Brewery exported 513 containers of beer to 19 countries
Sri Lanka’s largest brewery, Lion Brewery (Ceylon) PLC, has urged the government to restore the concessionary rate of income tax on its export profits.
The company said its exports are a buffer against the draconian policies on the home front.
“Exports are a buffer against inconsistent and unfair policies at home. Thus, exports are of strategic importance to the company.
This means that sooner, rather than later, we will need to start investing significant resources to build and sustain markets overseas,” Lion Brewery CEO Suresh Shah said in the firm’s latest annual report.
However, Lion Brewery praised the current Finance and Mass Media Minister Mangala Samaraweera for reversing the lopsided excise tax last year, imposed on beer in 2015, which effectively made hard liquor cheaper in the market compared to beer.
But the new Inland Revenue Act, introduced with effect from April 2018, continues to apply the corporate tax rate for alcohol products at 40 percent, as was previously.
However, the rate applicable for exports of beer, which was previously 12 percent, is now 40 percent.
“Exports are a key driver of economic growth. Higher tax rates dampen the motivation and encouragement needed for companies to vigorously search for export opportunities,” Lion Brewery Chairman Amal Cabraal said.