CTC contributes Rs. 52.4 billion to Government
A total of 79 million confiscated illegal cigarettes to the value of
Rs. 1 billion ensured a higher revenue base for the Government from
Ceylon Tobacco Company (CTC) at the end of 2009. CTC contributed a total
of Rs. 52.4 billion to the Government in 2009. Levies, duties and taxes
grew to Rs. 49.3 billion as a result of excise-led price increases and
an improved brand mix. Provincial Council Tax grew to Rs. 3.1 billion.
The Company's revenue and contribution to Government taxes and levies
benefited from robust law enforcement to minimise the presence of
counterfeit and smuggled cigarettes in the Country. With a persistent
drive by the authorities 1,890 seizures were made in 2009, resulting in
the confiscation of 79 million sticks of counterfeit and smuggled
cigarettes valued at over Rs. 1 billion. This was more than double that
of 2008.
Sales volume declined relative to 2008 due to the higher excise-led
price increases and lower consumer affordability. Ceylon Tobacco
Company's Profit After Tax for 2009 was Rs. 4,115 million benefiting
from productivity gains and aggressive cost management initiatives
significantly reducing operating expenses.
The Company has made good progress in its flagship Corporate Social
Responsibility initiative, the Sustainable Agricultural Development
Programme (SADP). The project into its fourth year remains one of the
largest CSR initiatives of Sri Lanka. Aligned with the Government's
national priority to alleviate poverty the total number of families
enrolled stands at 7,045 of these, 1,475 families are from the Eastern
Province. 941 families having achieved self sufficiency targets have
successfully exited the Programme.
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