Sri Lanka weighs hike in tobacco tax to help boost revenues

11 August 2016 12:03 am - 0     - {{hitsCtrl.values.hits}}

A A A

REUTERS: Sri Lanka plans to hike a tax on tobacco as it seeks alternative sources of income after two Supreme Court rulings delayed a plan for tax hikes to raise Rs.100 billion in revenue this year, the cabinet spokesman said yesterday.


The hikes were among the main requests of the International Monetary Fund (IMF), which approved a US $ 1.5-billion, three-year loan for the island nation in May, and a failure to raise revenue could jeopardise the government’s ambitious fiscal consolidation plan. Sri Lanka’s parliament on Tuesday said the Supreme Court had ordered it to stop consideration of a bill to raise value-added tax (VAT) because due process had not been followed in drafting the measure, a month after lawmakers suspended the tax hikes.


“We are now considering alternative revenue proposals,” the spokesman, Rajitha Senaratne, told reporters in the capital, Colombo.

“We are planning to increase tax on tobacco to raise Rs.18 billion.”


Senaratne, who is also the Health Minister, said the government would adopt the tax hike “very soon” after getting parliament’s approval.


Sri Lanka had planned to cut its budget deficit to 5.4 percent of gross domestic product (GDP) this year from last year’s figure of 7.4 percent, and has estimated it will achieve revenue of Rs.2.032 trillion in 2016, a jump of 38 percent from last year.


“So far there is no revision in the fiscal targets,” State Enterprises Deputy Minister Eran Wickramaratne told Reuters. “We still hope we can achieve them with alternative revenues.”
Sri Lanka’s state finances are in a shaky situation, partly due to heavy borrowing by the previous government during its nine-year tenure that ended in January 2015.

 

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

 

  Comments - 0

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

 

 

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.

Reply To:

Name - Reply Comment




Bio Bubble Bursts on tissa safari drivers

Ukrainian tourists are visiting Sri Lanka at present with the involvement of

Army’s LRRP Ambush of LTTE’s Military Intelligence Chief

A news report in the Dailymirror last August stated that the Long Range Recon

“I don’t think Sri Lankans can be realistically ruled by force” -Ahimsa Wickrematunge

Twelve years after the assassination of Lasantha Wickrematunge, the founding

Decisions to be made in Sri Lanka’s hunt for the COVID-19 Vaccine

Around the world, governments are gearing up to roll out nationwide immunizat

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