Sri Lanka increases taxes on sugar, alcohol, cigarettes
24 Jun, 201014:35:39
June 24, 2010 (LBO) – Sri Lanka has increased levies on sugar imports
by five rupees, while a cigarette tax would go up by one rupee and
taxes on a proof litre of spirits would rise by another 50 rupees, a
senior treasury official said.
Taxes on sugar imports have been increased as world prices are
expected to come down in future, S R Attygalle, director general,
fiscal policy at the finance ministry told our sister website
The 50 rupee tax hike is on a proof litre of spirits. Hence, the price
increase on a retail litre of alcohol would be less than the tax
increase, Attygalle said.
The Sri Lankan government is slapping new taxes on consumer goods to
increase state revenue which is far too short to cover government
expenditure that has lead to ballooning budget deficits.