LNP – 111-year-old Excise Ordinance to be replaced with new law

The Cabinet nod has been granted to replace the archaic colonial-era Excise Ordinance with a new law aligned with modern requirements.

President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation and National Policies on Monday sought the approval of Cabinet Ministers to instruct the Legal Draftsman to draft a new Act replacing the 111-year-old Excise Ordinance.

In 2022 interim budget, President Wickremesinghe shared plans to introduce a new Excise Act.

The Cabinet Spokesperson, Minister of Transport and Highways and Minister of Mass Media Bandula Gunawardana pointed out that the outdated Excise Ordinance is not equipped to cater to current requirements considering the new developments in tobacco and liquor industries over the period.
The government is attempting to increase excise tax collections by closing down loopholes in the system with a special focus on digitisation.