Sri Lanka plans cigarette tax hike

Under a Sri Lankan government proposal, taxes on cigarettes would be increased to the point where they accounted for 90 percent of their purchase price, according to an official government announcement.

The Minister of Health, Dr. Rajitha Senaratne, in his capacity as cabinet spokesman, told media representatives that he would draft a cabinet paper to increase taxes on cigarettes from the present 67-72 percent of purchase price to 90 percent of purchase price.

Such a move would likely result in tobacco companies, too, increasing their prices.

The minister said he felt very strongly about this measure, which would benefit the people of Sri Lanka.

“All the money raised from these taxes will be directly used for public healthcare services,” he said.