Govt. inhales Rs. 2.6 b more from fags

Saturday, 30 April 2011 00:23 - - {{hitsCtrl.values.hits}}

The Government has earned Rs. 2.6 billion more in revenue from the tobacco industry in the first quarter of this year as against the corresponding period of last year.

Ceylon Tobacco Company (CTC) said yesterday that it contributed Rs. 14.02 billion revenue to the Government coffers in the first three months of 2011.

As per CTC’s interim accounts, in the first quarter of last year the figure was Rs. 11.4 billion, reflecting that there was a Rs. 2.6 billion increase in revenue this year.

CTC mainly attributed the Rs. 14 billion contribution to the active enforcement by law enforcement agencies to minimise counterfeit and smuggled cigarettes in the country.

“The company’s revenue and contribution to Government taxes and levies benefited from this continued robust law enforcement,” CTC added.

It said the law enforcement authorities continued their momentum in protecting the Government’s revenue base, resulting in the seizure of 18 million counterfeit and smuggled cigarettes valued at more than Rs. 288 million, with a total of 91 raids conducted and resulting in Government revenue of Rs.14 billion in the first three months of 2011.

In the full year of 2010, revenue contribution to the State from CTC by way of levies and taxes was a record Rs. 50 billion, up from Rs. 45.7 billion in 2009. Excise levy raked in Rs. 42 billion, up from Rs. 38.7 billion in 2009.

Commenting on corporate results, CTC said that with the economy continuing to show healthy growth and with improving business prospects, it posted a strong performance on key business and financial parameters to record a growth of 28% to Rs. 814 million in profit after tax over the same period last year.

The flagship CSR initiative, the Sustainable Agricultural Development Programme (SADP), continues to progress, with the total number of families in the programme reaching 9,764 across 12 districts.

Out of this 3,149 families are from the Eastern Province. The programme to date has helped 2,659 families complete the programme and reach economic self-sufficiency.

CTC Directors also recommended a first interim dividend of Rs.4.20 per share, which will be paid on 20 May.