NATA wants Govt. to increase cigarette prices

2 November 2011 02:05 pm - 6 - {{hitsCtrl.values.hits}}

A A A

The National Authority on Tobacco and Alcohol (NATA) today urged the government to increase the price of cigarettes by 50 per cent as a means of controlling tobacco consumption and increasing government revenue.

NATA Chairman Carlo Fonseka said by increasing the price of cigarettes government revenue from tobacco would increase by a staggering Rs.16 billion.

He said it had been proved the world over that if cigarette prices were increased, total tobacco consumption would fall.

Professor Fonseka said the majority of those who consumed cigarettes were those in the lower income groups and each time we increased the price of a cigarette by 10 per cent, cigarette consumption reduced by five per cent.

“We are persuading the government to increase cigarette prices as it will benefit the government by way of taxes and protecting the people’s health. It is a win-win situation,” Prof. Fonseka said and added that as a first step a Rs.20 cigarette which was

increased by between Rs.1 and Rs.3 last week should be further increased to Rs.30.

He said with people having a larger purchasing power, cigarette prices should also be raised but this had not happened.

According to National Dangerous Drugs Control Board (NDDCB) statistics, tax income from tobacco had increased to Rs.725 billion last year.

Verite Research Economist Nishan de Mel said government revenue from tobacco could increase by Rs.16 billion if cigarette prices were raised by 50 per cent and if taxes were also proportionately increased.

“The government should find a reasonable basis to increase cigarette prices,” he said.

Mr. de Mel said with the nominal increase in real GDP there should be an increase in the price of cigarettes as well and added that between 2001 and 2005 there had been a reversal in the trend of cigarette price adjustments and tobacco affordability increases insignificantly as the increase in cigarettes prices was consistently less than the increase in GDP. (Olindhi Jayasundere)

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 6

izmie Wednesday, 02 November 2011 02:40 PM

Why only cigarettes? Alcohol it is the evil of all.

Bassa Wednesday, 02 November 2011 02:55 PM

Please increase tobaco taxes by 200%. Stop alchol sales inall the outlets otherthan Tourist hotels.

Lakmal Wednesday, 02 November 2011 02:59 PM

All of these price increases have to do with increasing government revenue.

How do people have an increase in purchasing power when wages and salaries do not increase?

Fun Thamail Thursday, 03 November 2011 02:11 AM

Increase the price by 200%, then the consumption should fall by 100%

Sanath R Thursday, 03 November 2011 05:30 AM

Price increase is of no use. It is the education on the health hazards of smoking is required to discourage. Useless collecting the revenue on the tax collected since you may need to spend more to treat those are affected.

Jude Perera Thursday, 03 November 2011 05:43 AM

What are you people talking. Do you have any idea what price elasticity of demand is ? Tobacco does not have a perfectly price inelastic demand. i.e. people will not buy cigarettes at what ever price. At a point people will reduce consumption. Even though the demand for cigarettes may be price Inelastic do not forget price is not the only thing that effects demand. Disposable income is a major factor. with the increase in prices of fuel cost of living will go up and thus diminish the buying power. couple that with a 50% increase in price of cigarettes will definitely reduce demand. It will in turn definitely effect the revenue to the government: It may reduce consumption but can we afford the reduction in revenue !

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

NATA wants Govt. to increase cigarette prices

Comments - 6

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Racing event tragedy leaves seven dead including eight-year-old child

Sri Lanka weighs Open Skies amidst plans for national carrier privatization

SL on alert on possible genocide allegations by Canada

Man who jumped off Sri Pada Uda Maluwa and went missing, found

Two racing drivers arrested over Fox Hill tragedy

Sri Lankan among NASA’s new crew for next simulated Mars journey

MIRROR CRICKET

Sahan Arachchige to lead Sri Lanka ‘A’

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

TODAY'S HEADLINES

Sri Lanka to establish new energy sector regulator

Cabinet nod to transfer China-built Mattala airport’s management to Indian, Russian joint venture

Sajith never attends dinners hosted by Ranil Wickremesinghe

One soldier dead, nine injured in road crash

Sahan Arachchige to lead Sri Lanka ‘A’

Dates confirmed for 78th Bradby Shield

SLAS appoints independent committee for investigation

Pakistan lose key players for last two T20Is against New Zealand