Liquor makers oppose new alcohol loss limit

Local liquor manufacturers have expressed strong opposition to the Excise Department’s decision to reduce the allowable alcohol loss limit during production and storage from 1.5% to 0.1%.

Industry representatives stated that the revised restriction, introduced under Excise Notification No. 991 on July 24, would place significant financial pressure on major beverage producers, which contribute approximately Rs. 23 billion in annual taxes.

In a formal written submission, companies warned that the stricter threshold could affect the continuity of their daily manufacturing operations.

Industry leaders explained that alcohol naturally evaporates during the production, storage, and bottling processes, particularly when spirits are transferred into bottling machinery. They argued that the revised allowance does not reflect practical operational conditions.

The companies also pointed out that the reduction from the previous 1.5% limit, established under Excise Notification No. 151, was introduced without a scientific evaluation.

They urged authorities to conduct a practical, evidence-based study before implementing the new policy.