Government cuts excise duty on smaller cigarettes

The government reduced the excise tax on the cigarettes measuring between 67mm-72mm by Rs.4.60 per stick, with effect from October 15, 2019.

Finance Minister Mangala Samaraweera issued the relevant gazette reducing the excise duty on the cigarettes measuring between 67mm-72mm, on October 14.  The cigarettes measuring between 67mm-72mm include cheaper brands catering to the lower-end of the market. 

The gazette declared that the excise duty imposed on a batch of 1,000 cigarettes measuring between 67mm-72mm would be reduced to Rs.33,000, from Rs.37,600. Samaraweera in July increased the excise duty on the same variety of cigarettes to Rs.37,580, from Rs.20,500, per thousand batch.

The duty hike resulted in the slightly higher excise duties slapped on 67mm-72mm sticks, compared to Rs.37, 580 per thousand imposed on the cigarettes of
over 72 millimetres.

Ceylon Tobacco PLC, a unit of British American Tobacco, holds monopoly rights for the manufacture, distribute and sale of cigarettes in Sri Lanka.