Cigarette prices hiked in response to VAT increase

Cigarette prices were increased with effect from yesterday.

The prices were increased by Rs.3.00, Rs.5.00 , Rs.10.00 and Rs.15.00 each for different categories of cigarettes.
According to market sources, the 3 percent VAT increase to 15 percent announced in the interim budget this week and the Social Security Levy prompted the price hike. 

Further, the cigarette industry is expecting a hike in excise duties in the 2023 budget which is scheduled to be presented in November. Hence, further increase in stick prices is expected. 

Ceylon Tobacco Company PLC, a unit of British American Tobacco operates as the monopoly cigarette producer in Sri Lanka.