POSTED AT 12:54 PM 07-12-2017
Reducing tax on Beer: Brewing company to enjoy financial benefits- GMOA
Image Courtesy: Daily News
The government’s attempt to reduce the tax on liquor through the Budget 2018 would only result in having financial benefits to the main brewing company in the country, which incurred huge losses in preceding years, the Government Medical Officers’ Association (GMOA) charged yesterday.
GMOA Secretary Dr. Haritha Aluthge told a news conference that according to the annual reports of this brewing company for 2016/17, it had incurred a loss Rs. 1.4 billion whereas it had obtained a profit of Rs. 2 billion in 2015/16.
Dr. Aluthge said that according to this brewing company, the reason behind this huge loss in 2016/17 was the floods occurred in last year.
“However, it is a well-known fact that the government had granted a huge tax relief on this brewing company in return for its loss in 2016/17. Reducing of tax on liquor will only pave the way to this brewing company to obtain more and more financial benefits,” he added.
Meanwhile, he said that the prices of beer would be reduced by 33 per cent following the tax relief on beer through the Budget 2018. He also said that it could be considered as an open invitation for all to consume beer.
He said that according to the economists it had been revealed that the consumption of beer would be increased by 22 per cent in next year due to the tax relief.
He said the GMOA would hope that the related authorities would take adequate measures to abolish these budget proposals which were contrary to the national policy of the country and which would risk the entire healthcare services as well.