Alcohol manufacturers have strongly objected to a decision by the Excise Department to reduce the permitted alcohol wastage allowance during the production and storage of alcoholic beverages.

Industry representatives claim that the revised regulation could place an additional financial burden on major alcohol producers, which currently contribute around Rs. 23 billion in tax revenue to the government. They warned that companies may be forced to pay taxes again on alcohol quantities already lost through unavoidable production and storage processes.

The manufacturers have formally informed the Excise Department that continuing their operations under the new regulation has become increasingly challenging.

According to industry sources, alcohol evaporation is a common occurrence during both the manufacturing and storage stages. They noted that substantial evaporation can occur when spirits are transferred to bottling machines and during the automated bottling process.

Manufacturers also pointed out that alcohol stocks taken into custody by Excise Department officials, including samples sent to the Government Analyst for testing, are assessed under the same wastage allowance system.

The Excise Department introduced the revised regulation through Excise Notification No. 991 issued on July 24. Officials said the amendment was based on wastage calculations relating specifically to arrack, coconut spirit, and palmyrah spirit production.

However, alcohol producers have criticized the move, stating that the reduction of the wastage allowance from the level specified in the previous Excise Notification No. 151 was carried out without adequate consultation or scientific assessment.

They have called for a comprehensive scientific and practical study before implementing the revised limit, arguing that authorities must first examine the actual causes of alcohol wastage, the conditions under which it occurs, and the scientific factors contributing to evaporation.