CTC, a major contributor to Govt. revenue in 2008

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 corresponding 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.

A spokesman for Ceylon Tobacco Company (CTC) said that 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 corresponding period last year.

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

The authorities carried out 370 raids during the first nine months of the year and counterfeit and smuggled cigarettes worth over Rs. 256 million were confiscated and destroyed.