11 September 2024 05:05 am Views - 3808
Sri Lanka’s local business community stands to gain from a major revision of the country’s import tax structure, with the government announcing new measures to reduce costs and boost domestic production.
The Cabinet of Ministers this week approved a series of import duty adjustments this week, targeting various sectors from manufacturing to trade.
According to the Department of Government Information, the new policy measures address customs import duties (CID), CESS levies, special commodity levies, and ports and airports development levies. These changes come in response to requests made by local industry and trade sector stakeholders.
Customs duties would be revised for a range of goods, including brown sugar, footwear, packaging materials, electrical machinery, plastics, and raw materials for the rubber industry. These revisions, covering 225 Customs codes, follow recommendations from the Ministry of Industry to strengthen local industries.
The revisions also include reduced import duties on baby and adult diapers and related absorbent materials, which are expected to lower costs for consumers. Additionally, new tax measures will promote plastic recycling and reduce plastic usage.
The changes will address discrepancies in import levies affecting domestic sectors such as bicycles, printing, washing machines, lighters, and children’s ready-made garments. New Customs codes will be introduced to encourage the export of palm products and differentiate electrically operated toys and long pepper, a key ingredient in traditional medicine.
The strategy for exempting CESS levies on raw materials for local medicine production will also be simplified.
These tax revisions will be implemented through ordinances under the Revenue Protection Act No. 19 of 1962, the Export Development Act No. 40 of 1979, and the Special Commodity Levy Act No. 48 of 2007. Further actions will be taken under the Ports and Airports Development Levy Act No. 18 of 2011 and the Import and Export (Control) Act No. 01 of 1969 to ensure full compliance.