COLOMBO: A proposal to increase prices of cigarettes by 5 rupees will be presented to the Cabinet in two weeks, the Ministry of Health said in a communiqué.
According to the Ministry of Health, the Cabinet Subcommittee has approved the revision of prices of cigarettes and amendments to the Value Added Tax. Accordingly the Minister of Health Rajitha Senaratne will present the proposals to the Cabinet of Ministers within two weeks.
A three-member ministerial subcommittee appointed by Prime Minister Ranil Wickremesinghe to provide recommendations over raising taxes, in its final report has recommended raising taxes on tobacco related products.
The Minister of Health Dr. Rajitha Senaratne previously proposed to increase the tax on cigarettes to 90 percent from the 72 percent imposed in 2014 and waive off VAT since proposed increase in VAT is expected to be a temporary measure.
The statement issued by the Health Ministry has reportedly said that the Minister rejected a request made by tobacco companies to discuss the tax revision of tobacco related products.
Earlier this month President Maithripala Sirisena said tobacco companies pressure the government against raising the tobacco tax to 90 percent.
The Ministry states 25,000 tobacco related deaths are reported annually adding the Ministry has taken several measures to minimize the impact of passive smoking among the public.
