Govt. plans to increase cigarette tax to 90%

June, 23, 2016

Government plans to bring in a new proposal to increase taxes of cigarettes to 90% of their purchase price.

Minister of Health Dr. Rajitha Senaratne in his capacity as the Cabinet Spokesman told media that he would draft a Cabinet paper to increase taxes on cigarettes from the present 67%-72% to 90% of purchase price.

Such a move would likely result in tobacco companies increasing their prices as well.

“I feel very strong about this measure and feel that the people of Sri Lanka would benefit from such a step. All the money raised from these taxes will be directly used for public healthcare services,” he said.