Sri Lanka’s Budget proposals for 2019 had proposed to increase Excise Duties on more than 60mm long cigarettes sold in Sri Lanka by 12% from today (6th March). This will result in an increase of Rs.5 per stick on average, accordingly. Further Excise duty on cigarettes will now be based on indexation with a minimum annual duty increase capturing annual inflation and GDP growth.

“This will ensure revenue protection and control affordability” Finance Minister Mangala Samaraweera presenting Budget 2019 said on Tuesday the 5th March 2019.

Further Finance Minister Samaraweera presenting Budget 2019 said that Nation Building Tax (NBT) on manufacturer of Cigarettes is effective from 1st June 2019.

Excise Duty on cigarettes will be increased by 12 percent as follows;

60 – 67 mm - Rs.19,500/- per 1000 sticks

67 – 72 mm - Rs.23,000/- per 1000 sticks

72 – 84 mm - Rs.37,580/- per 1000 sticks

>84 mm - Rs.42,200/- per 1000 sticks.