Tag: beedi

  • Sri Lanka’s Beedi Industry Under Attack

    Sri Lanka’s Beedi Industry Under Attack

    Sri Lanka’s Parliamentary Committee on Ways and Means called for stronger action to curb the illegal import of beedi leaves, warning that smuggling is eroding government tax revenue and undermining the legal beedi industry. During a recent meeting chaired by MP Wijesiri Basnayake, officials said large quantities of leaves are being brought in by sea to avoid import duties, despite existing enforcement efforts. The committee urged measures to stop industry participants from using illicit supplies and directed Finance Ministry officials to develop a mechanism to safeguard tax collection.

    Officials from the government, police, and navy discussed enforcement options. Lawmakers stressed the need to balance revenue protection with safeguarding employment in the beedi sector while tightening controls on illicit imports.

  • Sri Lanka Cracking Down on Beedi to Boost Tax Revenue

    Sri Lanka Cracking Down on Beedi to Boost Tax Revenue

    Sri Lanka’s Excise Department warned that anyone transporting beedi leaves (i.e. cheap, flake tobacco) without official transport permits will face immediate legal action, as authorities move to tighten enforcement against illegal production. Deputy Minister of Economic Development U. D. Nishantha Jayaweera said enforcement has been lax in the past, but new instructions have been issued to strengthen controls. While current tax revenue from domestically produced beedi stands at around 1–1.5 billion rupees ($3.4 million to $4.8 million), he said proper tax collection could raise this figure to nearly 15 billion rupees ($48 million). The government plans to introduce new measures to boost revenue and curb the untaxed, illegal manufacture of beedi.