Sri Lanka tobacco taxes among highest in the world

With President Maithripala Sirisena and Health Minister Rajitha Senarathna campaigning to further tax cigarettes, industry analysts have warned that tobacco taxation in Sri Lanka is already among the highest in the world. 

According to the WHO Report on the Global Tobacco Epidemic (2015), Sri Lanka falls among countries with the highest tax incidence in the world. The report also indicates that developed countries such as America, Japan, Singapore and Australia have far lower tax incidences when compared to Sri Lanka.

Last year Government levies amounted to Rs. 80.4 billion, up from Rs. 66 billion, whilst the Value Added to the State was Rs. 91.6 billion. This amounted to 7% of the Government’s total tax revenue.