Cabinet nod for resumption of ceramic imports

• Imports can be done through a 180-day loan basis
• Cess applicable on imports will be Rs.490 per square meter 

The Cabinet of Ministers this week gave the approval for a proposal to lift the suspension on ceramic imports, which remained banned for nearly a year, after the industry stakeholders met with the Treasury Secretary earlier this month, seeking redress to industry woes.  

As a result, the tile and ceramic traders can now resume importing tiles on a 180-day loan basis, paying a cess of Rs.490 per square meter, the Cabinet office said. 

The tile industry, represented by the local tile manufacturers and tile importers, met Treasury Secretary S.R. Attygalle earlier this month, to prevent an impending shortage of tiles in the market, caused by the suspension of imports at the onset of the pandemic, last year. 

Prior to the pandemic, the local manufacturers and importers equally shared the market, which is 25 to 30 million square meters of tiles in size.  

While the total size of the market fell roughly to 18 million square meters post pandemic, the local manufacturing has the capacity to meet only up to 16 million square meters, leaving the market with a gap of two million square meters per annum. In a unique and unusual collaboration between the manufacturers and importers, the two groups together lobbied for the lifting of the ban, due to the former’s inability to meet the entire demand, which caused higher prices and loss of jobs for importers.  

A compromise was reached between the two parties to tax imports at Rs.490 per square meter, instead of earlier Rs.183 per square meter, which would have rendered the local tiles uncompetitive.