Smokers cough up Rs. 68.6 b to Govt. in 9 months; 27% increase

Monday, 9 November 2015 00:00 - - {{hitsCtrl.values.hits}}

Ceylon Tobacco Company Plc (CTC) said on Friday that it had contributed Rs. 68.6 billion to the Government in the form of taxes and levies, during the nine months ended 30 September 2015, up by 27% from a year earlier.

“This performance is primarily driven by the increased levels of disposable income and consumer confidence experienced this year,” CTC said.

CTC’s revenue rose by 46% to Rs. 30 billion in the third quarter while Government revenue rose by Rs. 7.2 billion or 46% as against the third quarter of last year. First nine months at CTC revenue amounted to Rs. 83 billion, up from Rs. 64 billion a year earlier.

It said that growth in under regulated and low-taxed products such as ‘Beedi’ remains a key threat to Government revenue contribution from the tobacco industry.

Law enforcement agencies continued to effectively curtail the spread of unauthorised and illicit tobacco products. In the first nine months of 2015, a total of 1,169 raids had uncovered 10.4 million illegal cigarettes at a market value of Rs. 343 million.

CTC’s profit after tax stood at Rs. 8.8 billion for the nine months ended 30 September 2015, up by 33% from the corresponding period of last year. In the third quarter profit was Rs. 3.3 billion, up from Rs. 2 billion a year earlier.

CTC said it remains committed to investing in the company’s key brands with a predominant focus on infusing value into the main-stream brand, John Player Gold Leaf.

The company’s flagship CSR initiative, the Sustainable Agricultural Development Program (SADP), continued to focus on alleviating poverty and empowering the livelihoods of families in rural Sri Lanka. The total number of families supported by the company as at September 2015 stood at 18,064, comprising of 69,707 beneficiaries in 16 districts.

CTC Directors have recommended a third interim dividend of Rs. 9 per share to be paid by 27 November 2015.