Sri Lanka hikes cigarette taxes after VAT cut
ECONOMYNEXT- Sri Lanka has hiked taxes on cigarettes at rates ranging from 1.68 rupees to 6.15 rupees per cigarette based on length, effective from December 01, after value added tax and nation building tax was slashed.
The Treasury has issued an order under excise law, raising the tax on cigarettes over 84 millimeters to 48,350 rupees per 1000 sticks from 42,200 rupees and to 43,100 rupees from 37,600 rupees for cigarettes between 72 to 84 millimetres.
For cigarettes between 67 – 72 millimeters the new tax is 37,650 rupees, up from 33,000 rupees, and for cigarettes between 60 – 67 millimeters the new tax is 22,300 rupees, up from 19,500 rupees.
For cigarettes smaller than 60 millimeters the new tax is 13,360 rupees, up from 11,675 rupees.
Sri Lanka has cut VAT from 15 to 8 percent and a 2 percent sales tax called Nation Building Tax has been abolished for domestic goods. (Colombo/Dec04/2019)