Govt. Revenue From Tobacco Declines in 2017

Cigarette monopoly player in the country is Ceylon Tobacco PLC (CTC). In 2016, the tax revenue from tobacco grew 12.46 percent YoY and government excise earnings alone from tobacco was Rs.57 billion in 2014 before it peaked to Rs.88.7 billion in 2016.

 Due to significant increase in price of sticks in the last quarter of 2016, unprecedented 40 percent drop in volumes was recorded last year.

The tax earnings for the government from cigarette sales are likely to experience a drop  in 2017 for the first time in five years.

 According to provisional data, the government revenue from the tobacco industry is set to dip by Rs.2.7 billion or 3.1 percent year-on-year to Rs.86 billion.