Finance Ministry clarifies opposition claims on excise tax

Friday, 24 March 2023 04:09 - - {{hitsCtrl.values.hits}}

State Minister of Finance, Ranjith Siyambalapitiya, yesterday refuted claims from Opposition Leader, Sajith Premadasa, that government tax on cigarettes was just 20% of its selling price.

Issuing a communique following his speech in parliament, State Minister Siyambalapitiya clarified that tax on cigarettes was 70% of selling price, with beedi taxed at just 33%.

Tax on alcohol products was high as 90%, with a 40% turnover tax on the alcohol and tobacco industry.

The communique stated all casinos must pay Rs. 500 million in levies annually, in addition to a $ 50 entrance fee.

The government raised prices by Rs. 15 for cigarettes over 72 mm earlier this year, and prices touched Rs. 100 per stick, making Sri Lankan cigarettes the most expensive in the world. The government expects to earn an additional Rs. 22 billion annually through this measure.