Minister taken aback by invitation to alcohol and tobacco event
A Sri Lankan Minister on Monday expressed surprise at being invited to an event relating to alcohol and tobacco taxes and not being advised that the event was on these issues.
“I was surprised to learn that the Research Intelligence Unit’s ( RIU) report of the Economic Form Platform consisting of representatives from the alcohol and tobacco industry, have invited me to discuss issues relating to the tobacco and alcohol taxation where a government minister does not usually sit with them to pontificate on tax matters,” Dr. Harsha de Silva the State Minister of Economic Reforms and Public Distribution said.
Speaking at the RIU Economic Forum and the launch of Thinking Citizen Platform report held at the Hilton Hotel Colombo on Monday, he said: “I was not briefed beforehand on the topic on tobacco and alcohol taxation. Moreover the RIU report made available to me now is based on objectives of achieving tobacco taxation. Had I known that the discussion was on alcohol and tobacco I would not have come here.”
However the minister said he was surprised while perusing the RIU report to learn that Sri Lanka was the most expensive country in the world to purchase cigarettes. If the report is correct it implies that people are veering away from purchasing tax paid legally manufactured cigarettes to illegally smuggled or locally manufactured cigarettes that does not bring revenue to the state. However the incentive to consume or not such products depends on the tax imposed such items.
“I have brought this to the notice of the government to rethink ad hoc changes made to the tax system,” he said.
Referring to the taxes on alcohol, an index structure was needed based on a unit of alcohol contained in a bottle. The minister said that he was against the proposal when the government wanted to place a seal on aerated water and other beverages that does not pay excise duty and the government agreed to his proposal. When asked about whether wine stores’ permits have been issued to Member of Parliament, he said that he too had come to know of it and anyone could have access to such information under the Right to Information Act.
Meanwhile the Thinking Citizens Platform was launched at the forum.
RIU CEO and Founding Director Roshan Madawela said the Thinking Citizen Platform is a new concept that addresses complicated issues that arise in sectors that require deeper approach than from the state as everyone lives in a complex world with a globalised economy.
“The thinking citizen has been brought into the information revolution. We are a research house that does research on Sri Lanka, available to policy makers, thinktanks and governments. Thinking citizens will cover issues such as plastics and pollution, environment, governance and corruption and the taxation policy, digital economy, cyber security, international trade, etc.”
He said research done on asbestos used in Sri Lanka and Asia showed it was not harmful and was different to asbestos used in Europe. Economist Lalinda Sugathadasa, CEO of Advocata, Dhananath Fernando, Consultant RIU Sri Lanka Dr. Priyanka Beddevitharana and CEO of Lion Brewery Suresh K. Shah also spoke.