Sri Lanka state revenues up 19.8-pct to May

July 04, 2011 (LBO) – Sri Lanka’s state revenues rose 19.8 percent to 358.2 billion rupees in the five months to May from a year earlier, a finance ministry report said, with a surge in imports helping pad up revenues. The state extracted 23.8 percent more taxes from the people, totaling 319.7 billion rupees.

A mid-year fiscal report released by the Treasury said a duty cut on motor vehicles had resulted in higher imports and a rise in excise tax on cars. Excise taxes rose 60 percent to 70.7 billion rupees.

The production of hard liquor had risen 12 percent and soft liquor 20 percent in the five months to May. Excise from liquor had risen 59 percent to 22.7 billion rupees and from cigarettes to 19.8 billion rupees up from 15.6 billion a year earlier.

Increases in rates and sales expansion in to the north and the east had helped excise revenues.

Value added tax collections rose 9.8 percent to 86.9 billion rupees largely due to value added taxes on imports rising 29.3 percent to 41.8 billion rupees. VAT on domestic items fell 2.9 percent to 48.1 billion rupees.

Collections from a so-called ‘port and airport development levy’ rose 37.8 percent to 24.1 billion rupees, and import duty rose 43 percen