The highest cigarette tax increase in recent history occurred in 2015. Champika Ranawaka, who was a cabinet minister in that government was one of the main arbitrators of the group that worked to increase the cigarette tax to 90 percent.This increase eventually revealed the indifference of the corrupt officials who bent the cigarette tax. After this event no government in this country has implemented a tax policy of national importance in relation to this toxic smoke that is destroying a nation until now. At a time when the hyperinflation of essential consumer goods is a tax and is driving people away, is it not possible to find alternatives to get out of the existing economic crisis by imposing a positive tax on cigarettes, whose price does not change? We asked MP Champika Ranawaka.
Q – The government prepares to bring an interim short-term budget in the future. Are there any proposals to increase the tax on cigarettes?
A – Yes definitely. There are suggestions. Until now, even a Kilo of rice and even a Kilo of dhal have to be bought at an unaffordable amount. The prices of all the goods, from the sugar to the bread which the common people consume on a daily basis, have risen unbearably. In such a background, the price of cigarettes should also increase.
Q- Why did the price of cigarettes not rise even though the prices of all commodities have increased in the last two to three months.?
A – Ceylon tobacco is the blue chip that commands the monopoly of the tobacco market share. They have very close relations with this political authority. At the moment they are trying to hold a certain price in the market. It is an attempt to maintain their market.
Q – They have direct contact with you, right?
A – So far I have never become a pawn of the tobacco manufacturing company or liquor manufacturers. I can say that in front of anyone anywhere.
However all these institutions are maintaining direct and indirect relations with the political powers. Many politicians have now become the owners of alcohol factories. Liquor stores have also become owners. It is difficult to control the price of cigarettes or increase taxes on such a situation.
Q – Recently, the Liquor Licensee’s Association said that 400 million rupees due to the government from the liquor factories is being distributed to businessmen and politicians through illegal means. Is it true?
A – There may be some truth in that. Most of today’s politicians have not only factories but also ethanol licenses. Under such a situation, the common people are helpless.
Q – Under Sri Lanka’s tax system, when the tax amount for alcohol and cigarettes is increased, it can be seen that consumption decreases. You have experienced this situation, right?
A – Under the good governance government of 2015, we increased the tobacco tax by 90%. But nobody did not speak out .
Even then, there was a need to reduce the use of cigarettes for us. We were able to win that goal then. There are times when people who buy cigarettes even if taxes are increased often buy cigarettes at a higher price on their own accord.
Q – Do you agree to increase the price of cigarettes to provide tax money to the government..?
A – Not at all opposed to raising the price of cigarettes. But here we have to pay attention to several aspects very carefully. A workforce is needed to lead the country to development. In order to maintain a healthy work force, more attention should be paid to the health of the people of the country. If the smokers turn to things like cigarettes and alcohol and destroy their health, it becomes a reason for the backwardness of the country. We should think about people’s health first.
At present, most of the people of the country have to face unpleasent consequences such as cancerous conditions due to the use of cigarettes.
This country is in a serious situation. Even when there was no shortage of medicines in the government hospitals of the country, the maintenance of the people suffering from smoking had taken a crisis situation.
At present, the country is almost bankrupt. Not only that, there is a severe shortage of medicines in most of the government hospitals, but the shortage of medicines has affected it to such an extent that it is impossible to perform surgeries in some hospitals. Under this situation, if the number of patients increases due to smoking, there will be no measures that can be taken for them. This is a serious crisis.
Q – Will the price of cigarettes increase in the upcoming budget? Can you be sure about that?
A- It once again depends on the honesty of the government. As a People’s represntative in this legilature I promise to make the best possible impact. I consider it as a duty for this country. If a country wants a healthy population, one thing it should do is raise the price of cigarettes. It is a very clear fact.