FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Cigarettes and beedis

Cigarettes and beedis

Go down  Message [Page 1 of 1]

1Cigarettes and beedis Empty Cigarettes and beedis Mon Feb 16, 2015 8:54 am

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
[b]Island Editorial Courtesy Island[/b]

President Maithripala Sirisena, who as health minister in the Mahinda Rajapaksa administration took a special interest in ensuring that a powerful health warning that would hit smokers between their eyes, is carried on cigarette packets. He must surely be more than happy that he is finally having his way. While Sirisena wanted the graphic health warning to cover 80 percent of the front and back panels of cigarette packs, and gazetted regulations to that effect, the courts by a two to one split verdict held that 60 percent would be sufficient. It is now going to be 80 percent following legislation and no reasonable person would contest that decision. The information and evidence available conclusively establishes the incontrovertible fact that cigarettes are a killer and it is only the most stupid who will continue smoking. While it may be difficult for already addicted smokers to give up, the present efforts will certainly discourage young people from acquiring the self-destructing habit. So the present developments must be unanimously welcomed.

Having said that, we would like to return to a subject we have dwelt with before and ask why the money spinning beedi industry which flourishes in this country has been totally let off the hook as far as health warnings on their packaging is concerned. Apart from that, beedis are barely taxed. Successive government have over a long period of time been beating the cigarette industry with a price stick and today over 90 percent of the price that a smoker pays for a cigarette goes to the government as taxes. Neither prohibitive prices – each time a smoker lights up a popular brand of cigarette, he/she is literally burning 20 or 30 rupees – nor the increasingly tight regulations including chillingly graphical health warnings has driven Ceylon Tobacco Company PLC (CTC), the country’s only legal cigarette manufacturer, out of business. It continues to post super profits, pays its shareholders (the vast majority of who are foreign) fat dividends and its share price is among the highest among companies quoted on the Colombo Stock Exchange. The business continues to be most profitable both for British American Tobacco (BAT), the predominant shareholder of CTC, and for the Government of Sri Lanka which collects nearly Rs. 80 billion annually in taxes from the tobacco industry.

Collecting taxes from CTC is as easy as eating cadju nuts as the popular saying goes. One of the best organized companies in the country controlled by a multinational with a regional and global presence, it renders unto Caesar the things that are Caesar’s. Understandably, no doubt with the knowledge that it is in a controversial industry, CTC does not tire of publicizing its tax payments which are repeatedly stressed in its quarterly financial statements and annual reports. Every budget, with monotonous certainty, raises excise duties on alcohol and tobacco products. These taxes, often with an industry price increase added, are passed on to the consumer who pays more for his tot of arrack or cigarette as the case may be. Price increases usually depress consumption temporarily but sales pick up as time passes although available statistics show that where cigarettes are concerned the volume of sales, thankfully, is on a downward curve though CTC continues to prosper. The government hammering the legitimate cigarette industry with huge taxes results in a price deterrent on consumption and, no doubt, drives at least lowest end smokers to beedi. Similarly, the taxes on arrack must surely drive imbibers into the clutches of the kasippu mudalalis.

While beedis are not an industry as large as cigarettes, it generates more employment with published figures indicating that nearly 18,000 people are engaged in connected jobs. Against this, CTC employs a total workforce of just 1,426 of which 124 are direct factory employees. Beedis which are individually wrapped by hand is a labour intensive industry concentrated in the Kegalle and Mawanella areas as against the highly automated cigarette industry. In terms of size, the cigarette industry according to a Nielsen report generates an income of nearly Rs. 90 billion, most of which goes to government as taxes, while the beedi industry is worth Rs. 4.6 billion and hardly pays any tax. The major tax charge on beedis is customs duty on tendu leaves in which they are wrapped. Rs. 360 million was paid on this account in 2012 for which figures are available and around Rs. 22 million on the import of beedi tobacco. We do not know whether health-wise, smoking a beedi is less or more dangerous than smoking a cigarette. Visually a beedi is much slimmer and shorter than a cigarette and it may be assumed to contain less tobacco. But on the other hand, most cigarettes have filters that are claimed to remove at least a part of the harmful nicotine content.

There is no sense (or equity) in not including beedis in the health warning regulations. While the packs are far less ostentatious than cigarette packs, it is time that the authorities thought of getting beedi manufacturers to publish fairly prominently at least a simple health warning without insisting on graphics that cover 80 percent of the pack face. Importantly, beedis must also be taxed and government must rake its fair share of revenue from the product and ensure a price deterrent on consumers as in the case of cigarettes. President Sirisena, in his previous avatar as health minister, once went public with the claim that he could have made enough for generations if he soft-pedaled his campaign on graphic health warning. He did not offer details on who did what in this regard. Be that as it may, there has been pussy footing on taxing beedis with a perception that the industry commands some muscle thanks to the numbers it employs and political contacts. It was well known that the illegal `white’ cigarettes which paid no taxes but was freely available once-upon-a-time (though no longer) had a political godfather.

It is time the government used the tax stick on beedis too, may be less heavily than on cigarettes. Also the health warnings must be compulsorily displayed at points of sale of all tobacco products. Very few people can today afford to buy a packet of cigarettes and all but the affluent buy cigarettes by the stick. Thus the graphic warnings on packets will not be conveyed as powerfully to this class of smokers. Both the present president as well as successive governments must be congratulated for their efforts to make people desist from smoking. We do not know whether smoking is totally prohibited anywhere in the world but many countries have made it both more expensive and harder to persist with the bad habit. Meanwhile the beedi loophole here in Sri Lanka urgently needs plugging.

2Cigarettes and beedis Empty Re: Cigarettes and beedis Mon Feb 16, 2015 10:34 am

Senior Citizen

Senior Citizen
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
The Elite do not smoke beedis.So no pressure by any party to worry about the very poor man.

May be that issue can be resolved later.
The burning issues are Ciggerettes, gambling, curruption, environment, investment and cost of loving!

3Cigarettes and beedis Empty Re: Cigarettes and beedis Tue Feb 17, 2015 1:32 am

Teller

Teller
Moderator
Moderator
Hi senior citizen, actually cost of loving!:-) also a burning issue for me. My dil keep on spending. Actually this beedi industry was doing in well during years ago. These producers added bud like a cigeratte and invented a beedi called white beedi,so popular in the market. beedi producers earn millions with this product at that time even i can renmember Malindu beedi in warakapola baught a Benz refer worth than ten milion. NAIL Beedi also performed same in warakapola. CTC understood this threat and make a legal case on white beedies. CTC WON AND no more white beedies in the market because CTC has monopoly rights,the court ordered. When it comes this pictorial warnings may not effect to Ctc. I feel most of the smokers they know the side effects even experienced it. But they continue to smoke. We can see most of the countries are using pictorial warnings but not worth much.


_________________




Teller said is said..

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum