Presidential intervention sought to secure cess revenue for export development programmes

• In 2020, tax agencies collected Rs.1.16bn from cess on exports and Rs.47.5bn on cess on imports

Trade Minister Bandula Gunawardane is seeking the President’s intervention to secure the cess revenue from international trade to fund export development programmes, which are critical to meet the country’s export targets.
Although, it is required to credit cess collections to the Export Development Fund for the promotion and development of exports under the Export Development Act, Gunawardane noted that cess collections have been instead credited to the Treasury, making the Export Development Board a (EDB) wingless bird.

Hence, he seeks President Rajapaksa’s intervention to obtain at least 25 percent of the cess revenue collected under the EDB Act for export 
development purposes. 

Currently, cess is charged on exports as well as imports on a range of imports identified as ‘nonessential’ or as competing with local industries under the EDB Act, which are to be utilised for export development and promotion activities.

 In 2020, tax agencies collected Rs.1.16 billion from cess on exports and Rs.47.5 billion on cess on imports.
In particular, cess on imports, which ranges from 10 percent to 35 percent ad valorem on a range of imports, has become a tool to increase government revenue and to practice protectionism, according to critics. (NF)