Sri Lanka raises fag taxes to boost revenues

July 31, 2013 (LBO) - Sri Lanka has raised taxes on cigarettes to bring in an additional 1.4 billion rupees in revenues for the rest of the year, an official said. Treasury Secretary P B Jayasundera said tax revenues were picking up with an improvement seen in customs collections.

The price of cigarettes based on length has been raised by 2.00 rupees and 3.00 rupees with the tax increase.

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Deputy Treasury Secretary S R Attygalle said the tax increase will bring in 1.4 billion rupees in revenues for the rest of the year, making up for any shortfalls.

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Cigarette sales have weakened in the first four months according to a fiscal report and excise taxes were below target.

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