Jump to full article: Daily News (lk), 2007-10-15
Intro: THE PRICE of fags has gone up once again almost as a ritual ahead of the National Budget.
The Ceylon Tobacco Company has announced an increase in the price of all popular brands of cigarettes by as much as Rs.1.50, which is said to be the biggest ever price hike introduced. There is little doubt that liquor too would follow suit.
No sensible person would oppose these price hikes, as the adverse effects of these two evils are well known. . . .
The other side of the coin is that a bootleg tobacco industry has sprung up, depriving the State of millions of rupees. The recent detection of Rs. 100 million worth illegally smuggled cigarettes is a case in point.
Islandwide raids by excise officers also reveal the existence of hundreds of moonshine outlets doing brisk business. They do not pay a red cent to the State, but it has to spend heavily to treat alcoholics who develop various diseases after consuming the vile drinks.
Thus there has to be a compromise between taxes and the affordability of legal liquor, as exorbitant prices can drive imbibers to the illicit market.
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