Taxes on wheat flour reduced from Rs. 36 to Rs. 8 per kg

• Prices to come into effect from Wednesday, Finance Ministry to issue gazette
• Effort to reduce prices and possibly broaden wheat flour importers from current duopoly  

The Government has removed the consolidated tax of Rs. 36 per kg of imported wheat flour and replaced it with the Special Commodity Levy (SCL) of Rs. 8 per kg, in an effort to reduce prices and broad base imports to increase the number of importers.  

This Special Commodity Levy will come into effect from 14 December through a special Gazette notification issued by the Prime Minister Mahinda Rajapaksa as the Minister of Finance, Economy and Policy Development. 

So far, in the country only wheat grain was imported and milled to meet the country’s need for wheat flour for consumption. As per the decision taken by the Cabinet of Ministers last week with the introduction of SCL of Rs. 8 per kg of wheat flour the traders could import wheat flour directly to sell them at a competitive price in the local market, the Ministry said in a statement yesterday. 

Sri Lanka currently has a duopoly of wheat flour importers with prices controlled by the Government. 

In order to control the increasing prices of rice in the market the Cabinet of Ministers last week decided to set a maximum retail price of Rs. 98 per kg of Samba and Nadu rice while reducing the duty of wheat flour enabling the importation of wheat flour directly. 

Accordingly, the all-inclusive duty of Rs. 36 per kg of wheat flour has been reduced to Rs. 8 per kg with effect from 14 December.