TOBACCO TAX ACT

Arrangement of Sections

1. Short title.

2. Imposition of tobacco tax.

3. Tax to be payable by manufacturers of cigarettes, cigars, beedies or pipe.

4. Manufacturer intending to export cigarettes, cigars, beedies or pipe tobacco to make declaration to the Commissioner-General of Excise.

5. Registration of manufacturers.

5A. Importation of beedi tobacco.

6. Tobacco tax to be paid to the Commissioner-General of Excise.

7. Powers of inspection with or without a warrant.

8. Imported tobacco leaf or beedi tobacco and tobacco products.

9. Weights and weighing instruments to be kept in factories.

10. Appeals.

11. Dealing in improperly imported cigarettes be an offence.

12. Dealing in illicitly manufactured or imported tobacco products be an offence.

13. Non-compliance with the provisions of the Consumer Protection Act to be an offence.

14. Miscellaneous offences.

15. Penalty.

16. Evidence.

17. Disbursement of forfeitures and penalties recovered under the Act.

18. Payment to Excise Officers for special services and attendances.

19. Delegation of powers to the Director-General of customs or Director General of Excise.

20. Protection of action.

21. Regulations.

22. Repeal and savings.

23. Sinhala text to prevail in case of inconsistency.

24. Interpretation.

8 of 1999,

9 of 2004.

AN ACT to impose a tax on cigarettes, cigars, beedies and pipe tobacco, manufactured in Sri Lanka; and to provide for matters connected therewith or incidental thereto.

[Am by s 2 of Act 9 of 2004.]

[Date of Commencement: 3rd April, 1999]

1. Short title.

This Act may be cited as the Tobacco Tax Act.

2. Imposition of tobacco tax.

(1) There shall be charged, levied and paid on every cigarette, cigar, beedi and every kilogram of pipe tobacco manufactured in Sri Lanka, a tax (hereinafter referred to as the "tobacco tax”) at such respective rates as may be fixed by the Minister by Order published in the Gazette.

(2) The rate or rates of tobacco tax levied in respect of any article referred to in subsection (1) may be determined by reference to the class or description of that article and accordingly, different rates of tobacco tax may be determined in respect of different classes or descriptions of that article.

(3) The rate of the tobacco tax charged respectively on cigarettes, cigars, beedies and pipe tobacco or any class or description thereof may from time to time be varied by the Minister in charge of the subject of Finance by Order published in the Gazette.

(4) Every Order under subsection (1) or subsection (3) shall come into force on the date of its publication in the Gazette or on such later date as may be specified in the Order, and shall be brought before Parliament for approval as soon as may be convenient.

(5) Any Order under subsection (1) or subsection (3) which Parliament refuses to approve shall with effect from the date of such refusal, be deemed to be revoked but without prejudice to the validity of anything done thereunder. Notification of the date on which any such Order is deemed to be revoked shall be published in the Gazette.

(6) For the purposes of this Act, the cigarettes, cigars, beedies and pipe tobacco, removed from any factory shall he presumed to be cigarettes, cigars, beedies, and pipe tobacco, manufactured at such factory.

3. Tax to be payable by manufacturers of cigarettes, cigars, beedies or pipe.

(1) The tobacco tax shall he payable by each person who carries on business as a manufacturer of cigarettes or cigars, beedies, or pipe tobacco. The amount of the tax shall be computed by reference to the number of cigarettes, cigars, beedies, and kilograms of pipe tobacco manufactured at, and removed from, the factory at which such manufacture is carried on; and the amount of the tax payable upon the total quantity of cigarettes, cigars, beedies, or kilograms of pipe tobacco so removed from a factory in any week shall be paid as provided in this Act not later than the end of the next succeeding week.

(2) Subject to the provisions of this Act, a person shall not cause or permit any cigarettes, cigars, beedies, or pipe tobacco to be removed from any factory at which cigarettes, cigars, beedies, or pipe tobacco are or is manufactured unless and until the tobacco tax payable thereon has been duly paid in accordance with the provisions of this Act.

(3) Where any quantity of tobacco leaf or beedi tobacco is delivered at a factory or any quantity of cigarettes, cigars, beedies, or pipe tobacco is to be removed from a factory, it shall be the duty of the person in charge of the factory, within a period of forty eight hours after the time of such delivery or forty eight hours prior to the time of such removal, as the case may be, to furnish to the Commissioner-General of Excise or to any officer designated by the Commissioner-General of Excise for the purpose, a declaration signed by such person specifying the quantity of tobacco leaf or beedi tobacco so delivered or the quantity of cigarette, cigars, beedies, or pipe tobacco proposed to be so removed, as the case may be.

[S 3(3) am by s 2 of Act 9 of 2004.]

(4) Every declaration referred to in subsection (3) shall be in such form as may be approved or provided for the purpose by the Commissioner-General of Excise.

4. Manufacturer intending to export cigarettes, cigars, beedies or pipe tobacco to make declaration to the Commissioner-General of Excise.

(1) Where a manufacturer registered for the purpose under this Act makes a declaration to the Commissioner-General of Excise that he intends to export to such country as is specified in such declaration, cigarettes, cigars, beedies, or pipe tobacco manufactured by him of such quantity as is specified in such declaration, the Commissioner-General of Excise shall allow such manufacturer to remove such cigarettes, cigars, beedies, or pipe tobacco from any factory or warehouse in which they are stored, without the payment of the tobacco tax payable thereon, under this Act.

(2) Every manufacturer making a declaration under subsection (3) shall adduce proof to the satisfaction of the Commissioner-General of Excise, within six months of such declaration, that he has exported cigarettes, cigars, beedies, or pipe tobacco of such quantity as is specified in such declaration, to the country specified in such declaration.

(3) Where a manufacture referred to in subsection (1) fails to adduce proof to the satisfaction of the Commissioner-General of Excise, that he has exported cigarettes, cigars, beedies, or pipe tobacco of such quantity as is specified in the declaration made by him under that subsection, to the country specified in such declaration, the Commissioner-General of Excise shall direct him to pay the tobacco tax payable on such cigarettes, cigars, beedies, or pipe tobacco, with interest on the amount of such tax at the rate of ten per centum per annum, from the date on which such cigarettes, cigars, beedies, or pipe tobacco were removed from any factory or warehouse in which they were stored, to the date of payment of such tax and the interest-thereon.

5. Registration of manufacturers.

(1) From and after the date of commencement of this Act, a person shall not use any tobacco leaf or beedi tobacco in the manufacture of cigarettes, cigars, beedies, or pipe tobacco unless he has been registered by the Commissioner-General of Excise as a manufacturer for the purposes of this Act.

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