Sri Lanka raises sin taxes

Sri Lanka yesterday sharply raised taxes on alcohol, tobacco and gambling to pay for public sector salary increases and subsidised loans for small businesses in an election year. Finance Minister Mangala Samaraweera introduced a $50 entry tax on a handful of casinos while doubling taxes from the gaming industry.

Hefty increases were slapped on cigarettes and alcohol. Taxes on popular small Japanese cars were increased by a minimum of 20 percent, while Samaraweera also introduced a new carbon tax on all categories of vehicles except electric cars.

However, the minister announced a minimum 2,500 rupee ($15) monthly salary increase for the 1.5 million public sector employees, as well as raising pensions. He also announced a raft of special subsidised loans to start small businesses and cheap housing loans for newlywed couples.