Good Governance is Not Just for Politicians: Case for cigarette taxation=යහපාලනය දේශපාලකයන් සඳහා පමණක් නොවෙයි; දුම්වැටි බදුකරණයට නතු කිරීම

Abstract

The Excise taxes on products such as cigarettes and alcohol are a significant source of government revenue. Understanding how these taxes should be adjusted in keeping with price increases and being diligent in implementing these adjustments carry huge revenue implications. The decisions on taxation require technical evaluation and are significantly in the hands of Sri Lanka’s bureaucrats. This Insight explores the loss incurred to the government by the negligence of bureaucrats. The latest data reveals that the mishandling of this professional function with regard to cigarette taxation has cost the Sri Lankan government Rs.76 billion over the last eight years.