- Last Update 2026-04-26 09:25:00
Cabinet approves increased VAT on cigarettes
Cabinet has approved 15 % Value Added Tax (VAT) and Rs.5 production tax on cigarettes as well as an increase of cess on the import of “beedi” leaves, a statement said.
“Cabinet has decided to impose 15 percent VAT on cigarettes again, increase the current production tax to Rs. 5/- for any size cigarette, and to increase the cess on import of beedi leaves from 2,000 rupees to 3,000 rupees and to take other actions to minimise the tobacco use in the country,” the Cabinet announcement said.
“15 percent of Sri Lanka’s population between the ages of 18-69 smoke and the State spends 72 billion rupees each year to treat tobacco related illnesses.”
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