Revised import duties set to boost local trade and industries

11 September 2024 05:05 am Views - {{hitsCtrl.values.hits}} 4 Bookmark

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Cabinet approves a series of import duty adjustments this week
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
Revisions cover 225 Custom codes

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.

Comments - 4

Christo255 Wednesday, 11 September 2024 08:26 AM

The issue is not the reduction of rates but why it does not reflect in consumer goods. Government must ensure it is passed on to the consumer, otherwise as usual import mudalalis get richer while we pay the same old prices.

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Cecil Hedwige Wednesday, 11 September 2024 08:53 AM

If Sl is to reduce its external loan commitment,we should try to reduce imports and concentrate on local meterial untill our economy is stabilised. We must not fall into the debt trap in the future to please certain individuals.

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Roshanaly Wednesday, 11 September 2024 10:22 AM

Still they have not learnt the lesson from the Gota Government. They are doing everything to gain the power.

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Suhada malli Wednesday, 11 September 2024 04:33 PM

Government should look at a model where local manufacturers who export atleast 10% of their products are entitled to a limited propotional quota of CESS PAL concessions for their production related imports. (including for local consumption) The carrot here is to encourage every manufacturer to find at least one export destination and overseas customer to make a small export income.

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