Skip to Content

Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2041

Cigarette prices increased by another Rs 7 per cigarette

Colombo, 05 October, (Asiantribunne.com):

Finance Minister Ravi Karunanayake announced that the price of a cigarette have been increased by Rs 7 per cigarette with effect from midnight yesterday (3).

There was a huge shortage of cigarettes reported from the market during the last few days in anticipation of a price hike.

Addressing a press conference in Colombo, he also said that the Value Added Tax (amendment) bill will be presented to Parliament on the 4th.

Last week the Cabinet approved the proposal to impose 15% VAT on cigarettes plus an increase in production tax by Rs. 5 per cigarette.

Surveys have revealed that 15% of persons between 18-69 years are engaged in smoking and about 30,000 die annually due to tobacco related diseases.

It has been calculated that the government spends about Rs. 72 billion annually to treat such patients.
The World Health Organization has identified that taxation is a good measure to control the use of tobacco and cigarettes.

Recommendations were made by the Cabinet Committee appointed to consider the joint proposal made by the President Maithripala Sirisena and Dr. Rajitha Senarathne, Minister of Health Nutrition and Indigenous Medicine, to revise taxes on tobacco and cigarettes.

Accordingly the Cabinet decided to impose 15% VAT on cigarettes again, increase the current production tax from Rs. 5/- for any size cigarette, and to increase the cess on import of beedi leaves from Rs. 2,000/- to Rs. 3,000/- and to take other actions to minimize the tobacco use in the country.

- Asian Tribune -

Cigarette prices increased by another Rs 7 per cigarette
diconary view
Share this


.