Sri Lanka raises tobacco, alcohol taxes

Mar 31, 2012 (LBO) - Sri Lanka's finance ministry said it had raised taxes on tobacco, alcohol and beer, including higher import duties on imported beer, which can potentially raise 3.





0 billion rupees in new taxes a year. Excise tax on wine will go up by 50 rupees to 838 rupees a liter, on hard alcohol (arrack) by 60 rupees a litre to 983 rupees, on other 'foreign' alcohol types by 60 rupees to 1,123.

On locally made beer excise will go up by 5 rupees to 90 rupees a litre.

Beer with more than 5 percent alcohol will attract a tax of 106 a litre, also with a 5 rupee increase.

Duty on imported beer has been raise 50 rupees a liter.

Cigarettes will go up by one rupee a stick.

The finance ministry said it hoped to collect three billion rupees from the tax changes.

Sri Lanka has been facing a balance of payments crisis partly due to heavy borrowings by the state to cover losses in state enterprises.

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