CTC a major contributor to State Revenue

Government levies were Rs. 34.3 billion from the legal cigarette manufacturer for the nine months ending September 30, 2008 an increase of Rs. 4.8 billion over the same period last year.

This is mainly attributed to the excise led price increases and declining volumes of illegal and counterfeit products in the local market. Major initiatives in rationalising distribution, further localisation of material inputs including leaf tobacco, and ongoing organisational restructuring have continued to deliver significant savings.

Ceylon Tobacco Company (CTC) said Government levies from the tobacco industry have grown from Rs. 29.5 billion during the nine months ended September 30, 2007 to Rs. 34.3 billion during the same period in 2008.

However, total industry volumes continued its downward trend as a result of higher excise-led price increases and declining consumer affordability. CTC’s total sales volumes were also lower over the same period last year.

Raids and detections carried out by Customs, Excise officials and Police to minimise the availability of counterfeit and illegal cigarettes has seen a decrease in estimated volumes of these illegal products.