Smok­ers cough up Rs.117.3bn to govt. in 2017

Daily Mirror (Sri Lanka) - - LATE CITY -

The mo­nop­oly cig­a­rette player, Cey­lon To­bacco Com­pany PLC (CTC), has paid Rs.117.3 bil­lion to the state in ex­cise, taxes and levies in FY17, com­pared to Rs.98.3 bil­lion in FY16, the fi­nan­cial ac­counts re­leased to the Colombo Stock Ex­change showed.

How­ever, CTC main­tains that the gov­ern­ment could have milked Rs.135 bil­lion in to­tal taxes in FY17, if not for the 43 per­cent cig­a­rette price in­crease and 15 per­cent value-added tax (VAT) that were ef­fected in the fourth quar­ter of 2016.

“In the past, the Gov­ern­ment of Sri Lanka had suc­cess­fully in­creased its ex­cise rev­enue from cig­a­rettes, on av­er­age, by around 20 per­cent year-on-year (YOY) but in 2017, it ex­pe­ri­enced only a mar­ginal in­crease of 1.6 per­cent over 2016 to Rs.88.9 bil­lion,” CTC said in a state­ment to the press. The com­pany saw its gross rev­enue for the year surg­ing to Rs.139 bil­lion from Rs.121.5 bil­lion in FY16 but the net rev­enue—rev­enue af­ter gov­ern­ment levies— edged down 0.3 per­cent YOY to Rs.31.6 bil­lion.

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