The state has lost around Rs. 100 billion of excise revenue in the past five years or so as a result of indecisions relating to taxes, said the Alcohol and Drug Information Centre (ADIC).
The taxes imposed haphazardly dropped cigarette sales by half but raised profits of the Tobacco Company by 400 percent at the same time, said executive director of ADIC Sampath de Saram.
Giving a breakdown, he said that in 2023, the excise duty was increased by 20 pc to raise tobacco taxes to Rs. 7.7 billion, or seven pc, and alcohol taxes by a similar margin, or Rs. 11.6 billion.
Consumption dropped by 8.3 million litres of alcohol and 521.5 million cigarette sticks, said de Saram.
Despite that, the Tobacco Company earned an additional profit of Rs. 7,000 million.
Cigarette sales 10 years ago were 4,800 million sticks, which stands today at 2,200 million, or a 50 pc reduction, but profit has gone up by 400 to 500 pc, he explained.
Since 2009, excise taxes have been decided to allow that company to have profits, which it uses in turn to promote smoking, charged the ADIC chief.
Furthermore, tobacco is levied at just six pc and it is nine pc for alcohol of the entire tax revenue, but we are told salaries cannot be paid for state sector workers without that income and etc., he said, adding all that were lies.
Leave a comment