Ceylon Tobacco’s benefit to the economy: Rs. 32.7 bln in taxes in 1st half 2013

Ceylon Tobacco Co (CTC) said last week it contributed Rs. 32.7 billion to government revenue, up 5 per cent increase compared to the same period last year.

“This was achieved despite a 7.3 per cent volume drop, in the backdrop of challenging economic conditions especially in the first quarter,” it said in a statement.

CTC’s post-tax profit was Rs. 4.3 billion, driven by higher revenue, better product mix and higher net interest income stemming from change in the investment strategy made in 2012

While the total volume was down, Dunhill which represents the niche premium segment grew by 7 per cent compared to the same period last year, fueled by its innovative variant Dunhill SWITCH. Export sales revenue increased by 13% to LKR 47.6 million. The company will continue its endeavour to improve export performance into the future.

CTC said its’ flagship CSR initiative, SADP (Sustainable Agricultural Development Programme) in its sixth year, is focusing on supporting 2,576 active farmers in the districts of Kilinochchi, Kandy, Matara and Hambantota this year. It also launched SADP Ultra to 4,100 tobacco farmers with an objective of introducing social responsibility in tobacco production (SRTP). SADP continues its voyage of alleviating poverty, supporting a total number of 16,164 families to date

CTC said it has challenged in courts the Regulations published by the Minister of Health to implement pictorial health warning covering 80 per cent of the cigarette packs. The implementation of the Regulations has been deferred pursuant to an interim order made by the Supreme Court to maintain the status quo until the case is taken up for hearing of CTC’s appeal for a stay order. The Supreme Court has now fixed the hearing for 20th September.