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Sri Lanka hikes tobacco taxes

Oct 06, 2012 (LBO) - Sri Lanka has raised tobacco taxes from October 06, a notice posted on the island's customs office showed, to raise extract more money from citizens and cut a budget deficit stemming from unchecked state spending.
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The tax hike came ahead of a budget for 2013 to be presented in parliament on November 08.
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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.

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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.
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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.

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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

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