New tax on coconut oil imports A fraud similar to multi-billion sugar tax scam: Local manufacturers

• urges govt. to reimpose tax of Rs. 200 on coconut oil
• We need to import raw material
• Our association is ready to import instead of BCC

By Kelum Bandara  

The All Ceylon Traditional Coconut Oil Manufacturers Association alleged that the latest import tax on coconut oil imports would lead to a fraud similar to the infamous multi-billion ‘sugar tax scam’ benefiting only a handful of importers with stocks purchased previously.  

The Association’s Convener Buddhika de Silva told Daily Mirror the price hike resulting from the tax hike would ensure benefits for a few importers who were involved in trade malpractices in the past.   

He said he was aware of some importers maintaining stocks of around 50,000 tonnes of imported coconut oil.  
“This will not ensure benefits for consumers or local manufacturers,” he said.  

He said there was a tax of Rs. 200 previously on coconut oil imports, and urged the government to re-impose it. Also, he asked for the implementation of the Cabinet decision taken in 2020 to import dehydrated coconut chips as raw materials for the traditional coconut oil industry.   

 
“We need to import raw material. Our association is ready to import instead of BCC.
We will find our own funds. 

All we need is the government’s tax concession offered to BCC to be offered to traditional coconut oil manufacturers,” he said.

New tax on imported coconut oil from next week

By Chaturanga Pradeep Samarawickrama  

The government has decided to impose a new tax on imported coconut oil from next week, State Finance Minister Ranjith Siyambalapitiya said.  

While addressing a meeting in Ruwanwella yesterday evening, he said the decision was taken to protect local coconut oil manufacturers.  
Accordingly, a discussion was held to impose a tax of Rs.25 for a liter of imported coconut oil.