According to the gazette dated August 26, the per litre tax on beer is Rs. 50, on wine Rs. 100 and hard liquor Rs. 200, effective from September 01.

As a result of these taxes, leading beer importer Ceylon Breweries has become concerned.

It imports beer as its brewery at Biyagama was closed following flooding recently, although it had recovered losses through the insurance cover.

Owned by the Selvanathan family, the company managed to obtain a four-month concession, which is a Rs. 200 reduction out of the Rs. 500 Customs levy per litre of imported beer.

This means the country loses nearly Rs. 07 billion in excise income.

Ceylon Breweries was given the relief with the mediation of a top government figure and two ministers, one of whom is closely related to a head of the company.

However, with the new tax, the company claims it will suffer losses and has asked a top government authority to immediately withdraw the tax.

It has decided not to get clearance for the hundreds of containerloads of beer it had imported and presently with the custom, until the new tax is withdrawn.