Business

CTC boosts sales by 2.3% and contribution to state revenue by 7%

The Ceylon Tobacco Company (CTC) boosted total sales by 2.3% in the second quarter ended 30th June 2018, including a 6% gain in domestic sales year on year, while net turnover rose by 5.2%.

CTC’s contribution to government revenue through excise and other levies rose by 7.4%, or Rs. 2 billion and the company’s profit after tax was 4.35 billion.

The company said that the Government suffered a revenue loss of Rs 20 billion as a result of smuggled illicit cigarettes, with the illegal market estimated to be more than 500 million cigarettes per annum. CTC said that it expects this number to increase due to the latest price hike, as well as the growing availability of illicit cigarettes in the local market and macroeconomic factors that stimulate consumer spending power. It added that there were 909 raids conducted by law enforcement agencies in the first 6 months of this year.