Sri Lanka raises tobacco, alcohol taxes

Mar 31, 2012 (LBO) – Sri Lanka’s finance ministry said it had raised taxes on tobacco, alcohol and beer, including higher import duties on imported beer, which can potentially raise 3.0 billion rupees in new taxes a year. Excise tax on wine will go up by 50 rupees to 838 rupees a liter, on hard alcohol (arrack) by 60 rupees a litre to 983 rupees, on other ‘foreign’ alcohol types by 60 rupees to 1,123.

On locally made beer excise will go up by 5 rupees to 90 rupees a litre. Beer with more than 5 percent alcohol will attract a tax of 106 a litre, also with a 5 rupee increase.

Duty on imported beer has been raise 50 rupees a liter.

Cigarettes will go up by one rupee a stick.

The finance ministry said it hoped to collect three billion rupees from the tax changes.

Sri Lanka has been facing a balance of payments crisis partly due to heavy borrowings by the state to cover losses in state enterprises.


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