A memorandum on the tax hike on tobacco with its pros and cons with some facts and figures will be presented to the Cabinet highlighting the revenue fall due to drop in cigarettes sale by the Finance Ministry, reliable sources said.

The current rate of Excise Taxation of Cigarettes is around 86 percent and increasing it to 90 percent will not raise much revenue for the country, according to official data which is to be high lighted by the treasury officials.

Health Minister Rajitha Senaratne said commenting on the delay in increasing tax on tobacco companies to 90 percent noted that the Economic Subcommittee of Parliament will hand in a report on the proposed increase of tax on tobacco companies to 90 percent soon.

"Officials from the Finance Ministry have said this increase will bring about the ruin of tobacco companies. The President has said the aim of the government is to weaken the tobacco companies, not to strengthen them," he said.

"Even then Finance Ministry officials tried to educate us on the dangers of crippling the tobacco industry’, he said. He added the present government is also facing the pressure from tobacco firms.