In Sri Lanka taxes on citizens can be raised without consultation outside the annual budget through a so-called midnight gazette literally while citizens are sleeping, in a fundamental violation of the principle of 'taxation by consent' practiced by free countries.
In March 2012, Sri Lanka raised taxes and alcohol as the state enterprises ran losses manipulating energy prices with credit, triggering tax losses, monetary printing and a balance of payments crisis.
A notice on Sri Lanka's customs office said excise duty on tobacco on cigars had been raised to 7,000 rupees a kilogram (5,500 rupees in March), and cigarettes below 60 millimetres to 4,612 rupees per 1,000 units from 4,037 or 57.5 cents a ciggarrette.
For cigarettes between 60 and 67 millimetres taxes were raised from 9,258 a kilogram from 8,112 in March for 1,000 units and for cigarettes between 67 and 72 millimetres taxes were raised to 12,100 rupees per 1,0000 from 10,953.
For cigarettes between 72 and 84 millimetres taxes were raised to 14963 per 1,000 from 13,815 and for cigarettes of over 84 millimetres to 18,500 from 17,100 rupees in March.Sri Lanka's budget deficit had expanded to about 5.6 percent of gross domestic product by July 2012, compared to an year-end target of 6.2 percent of the year.
Unless taxes were raised or state spending cut, the budget is on track to widen to about 9.5 percent of GDP.
Sri Lanka's rulers in power however usually do not cut spending and recruits more state workers adding to tax spenders in the country, egged on by sections of the ruling class such as the Marxist JVP which is usually in the opposition.
Lecturers in the tax payer funded higher education system has also been agitating for more state spending including on their salaries, which will require more taxes on the people.
Tax spenders have named the tax payer funded education as a 'free education system' in a bid to mislead the ordinary public who bear the burden.
Raising taxes to cover high state spending, instead of borrowing or printing money can help stabilize the rupee exchange rate and keep inflation low.