• Says new tax based on seasons to be introduced to protect local farmers and producers from next year

By Ajith Siriwardana

The Special Commodity Levy that was imposed to protect the local farmers and producers would be scrapped from January next year and a new tax system based on seasons would be introduced, State Minister of Finance Ranjith Siyambalapitiya said yesterday.   

The Minister said a new tax based on seasons would be introduced to protect the local farmers and producers from next year. 

 
He said the seasonal tax which is connected to the custom duty would be introduced after identifying the period of time when the local produce comes to the market just as in other developed countries.   

The Minister said the decision to scrap the Special Commodity Levy was taken as the benefit of the Special Commodity Levy did not pass to the consumers most of the time as the prices of goods were not reduced even when the said Levy was reduced just as in the famous case of the sugar fraud.   

He said, in some cases, prices of goods in the local market were also increased in proportionate to the increase of the Special Commodity Levy for imported goods.   

The Minister said the scrapping of the Special Commodity Levy would prevent certain groups from amassing undue profits.