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CTC hikes prices as NATA urges price formula adherence

03 Oct 2022

By Dinitha Rathnayake   The Ceylon Tobacco Company (CTC) has increased the price of a cigarette by Rs. 5. Accordingly, the new price of a Gold Leaf cigarette will be Rs. 85, while the new price of a Benson & Hedges cigarette will increase to Rs. 90. The main reason for the increase in cigarette prices is the social security scheme introduced in the last Budget that came into effect last Saturday (1). Meanwhile, the National Authority on Tobacco and Alcohol (NATA) urged the Minister of Finance – a position currently held by President Ranil Wickremesinghe – to adhere to the price formula regarding cigarettes for the sake of the future generations of Sri Lankans. Speaking to The Morning, NATA Chairman Dr. Samadhi Rajapaksa remarked that he is pleased with the price increase of cigarettes, and that the Government should stand with the people, not the cigarette companies. “We introduced a price formula for cigarettes one and a half years ago. It was never implemented due to the activities of the former Finance Minister, since he was collaborating with the companies, but we hope the current Finance Minister will have a clear understanding of the present situation. The price increase should be transparent, scientific, and explainable. If the tax formula is implemented, State revenue will increase rapidly, with a 6% increase per annum.” He also noted that the tax formula will also make it difficult for the public to purchase cigarettes as well.  “When that happens, there will be a reduction in the number of people who smoke in Sri Lanka,” the NATA Chairman said. Meanwhile, the prices of certain brands of liquor were also increased last Saturday. Accordingly, the prices of DCSL (Distilleries Company of Sri Lanka) brands of liquor have been increased by an average of Rs. 150 per 750 ml.


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