Sri Lanka increases taxes on sugar, alcohol, cigarettes

The Hapag-Lloyd delegation including, Capt. Prateek Gandhi – Director Operations, Hapag-Lloyd, Regional Office, Dubai,Mr. Faheem Mir – Manager - Operations, Hapag-Lloyd, Regional Office, Dubai,Mr. Lalith Witanachchi – Vice President, Hapag-Lloyd Lanka (Pvt) Ltd, Mr. Mindaka Dassanayake – General Manager, Hapag-Lloyd Lanka (Pvt) Ltd.,Mr. Rohan Ranasinghe – Terminal Operations Manager, Hapag-Lloyd AG and Mr. Iqram Cuttilan – Managing Director, Aitken Spence Shipping Ltd poses for a pic with SLPA’s Chairman -Admiral Sirimewan Ranasinghe and the Managing Director - Eng. Ganaka Hemachandra. SLPA's Vice Chairman - Eng. Herath M.P. Jayawardhana, Director (Operations) - Mrs. G. Zavia Miskin and Director (Marketing and BD) - Mr. H J K U Kumara are also present.

June 24, 2010 (LBO) – Sri Lanka has increased levies on sugar imports by five rupees, while a cigarette tax would go up by one rupee and taxes on a proof litre of spirits would rise by another 50 rupees, a senior treasury official said. Taxes on sugar imports have been increased as world prices are expected to come down in future, S R Attygalle, director general, fiscal policy at the finance ministry told our sister website www.vimasuma.com.

The 50 rupee tax hike is on a proof litre of spirits. Hence, the price increase on a retail litre of alcohol would be less than the tax increase, Attygalle said.

The Sri Lankan government is slapping new taxes on consumer goods to increase state revenue which is far too short to cover government expenditure that has lead to ballooning budget deficits.