Ugly taxes in Sri Lanka

Some analysts believe that Sri Lanka’s society considers tobacco and alcohol users to be ‘ugly people’, according to a story in The Island.

And because of their lowly status, tobacco and alcohol users are easy game for those wanting to increase tax revenue.

They cannot protest.

Unsurprisingly, a proposal for ‘another’ tobacco-tax hike has been sent by the Cabinet to the Finance Ministry for consideration.

Current plans are to raise tobacco taxes to 90 percent of the retail price from a little over 70 percent.

Tobacco has been out of favor for some time in Sri Lanka and President Maithripala Sirisena, a former health minister, has pushed for tighter labeling requirements.

The Island said that tobacco use had fallen in the country ‘over the years’, but it gave no details.