During the second reading of the Budget, SJB MP Buddhika Pathirana brought to the notice of the House that artificial toddy was now also being used to manufacture vinegar, posing significant threats to human health in addition to leakage of Government revenue.
Pathirana said artificial toddy had grown into a huge racket islandwide and racketeers even use poisonous substances such as ammonia, urea fertiliser and nickel cadmium off old batteries to produce this toxic drink. He revealed that some manufacturers had resorted to using this poisonous produce to manufacture arrack and vinegar and requested the Government to investigate the matter.
The Opposition Parliamentarian was responding to a statement made by State Minister Ajith Nivard Cabraal, who said there was no evidence of artificial toddy being used to manufacture vinegar. He noted that only one excise license had been granted this year so far to manufacturer vinegar out of coconut toddy. The Minister made these comments citing an excise report received based on these queries.
MP Pathirana said that these reports were compiled by officials at ministries and departments who were at times in cahoots with racketeers or did not conduct comprehensive studies, and therefore do not represent the real picture. He said he had first-hand evidence of this and claimed his comments could be corroborated by some of the Government backbenchers.
Pathirana urged Minister Cabraal to commission an independent study, alongside an official report including his Ministry, the Ministry of Health, the Department of Consumer Affairs and the Department of Health.
Minister Cabraal acknowledged the current report had come from the Department of Excise and added that he would consider an independent study after contemplating Pathirana’s comments.
MP Pathirana noted that by taking census of coconut trees used to manufacture toddy under license, the Government could calculate how much of toddy should really come into the market, and the rest would constitute artificial and illicit toddy.
Pathirana added that over Rs. 80 billion was lost annually as excise tax revenue to the Government from the artificial toddy racket, alongside illicit alcohol and smuggled tobacco. He requested the Minster to continue with the system of calculating toddy production based on the number of trees, despite any requests from corrupt officials to do away with it.
Pathirana said the Excise Department too had accepted that there was well over Rs. 40 billion in leakage from excise on alcohol products, which could be used for the development of this country.
(FT)