Increased Customs tax prevents selling rice at controlled price: Importers

Colombo, December 13 (Daily Mirror) -Even though the required stocks of rice have been imported into the country, releasing these stocks to the local market has been difficult due to an increase in Customs duty charged per kilogram, a rice importer said.

An importer from the Pettah market in Colombo mentioned that he had imported 500 tons of rice in 20 containers. 

"As requested by the government, we imported the rice stocks before December 20. However, we are now facing difficulties in releasing the stocks from Customs," he explained.

"Due to the high Customs duties, the imported containers of rice are stuck at the port. We have to pay Rs. 65 per kilogram as Customs duty," he added.

"We had a discussion with the Trade Ministry regarding the tax increase, but they refused to remove it. Earlier, the Customs duty was only 25 cents per kilogram of rice."

"After paying the Customs duty and other related service taxes, the total cost per kilogram of rice amounts to Rs. 232. However, the government-imposed controlled price for rice is Rs. 230 per kilogram. This means we have to sell the rice stock at a loss."

"I have paid the Customs duties, and the rice stocks will be released today. However, it is impossible to sell the stock in the local market at a loss," the importer said.