CoPF reviews and approves excise duty and tax orders

Saturday, 15 March 2025 00:10 - - {{hitsCtrl.values.hits}}

The Committee on Public Finance (CoPF), this week reviewed the proposed increase in excise duty on cigarettes.

The meeting chaired by Parliamentarian Dr. Harsha de Silva on Tuesday (11) where officials from the Finance Ministry presented the steps taken under Section 3 of the Excise (Special Provisions) Act No. 13 of 1989.

The Committee emphasised that the duty increases could not be approved without concrete data and called for justification of the measures taken at the previous meeting.

Studies had indicated that the current calculation method had led to a decline in Government revenue, while increasing the profits of certain manufacturers.

Given this, the Committee underscored the importance of ensuring the tax revision would genuinely benefit Government revenue.

After extensive discussion, it was decided to reconsider the proposal following further clarifications from the Finance Ministry. However, after further deliberation, the Committee approved the Order under Sector 3 of the Excise (Special Provisions) Act.

Additionally, the Committee reviewed and approved two Orders under the Special Commodity Levy Act, No. 48 of 2007. The first, published in Gazette Extraordinary No. 2417/20, extended the validity of the Special Levy on 63 essential food items at the same rates, based on recommendations from relevant Ministries.

The second, published in Gazette Extraordinary No. 2421/03, granted tax concessions for imported dates intended for free distribution during the Ramadan fasting period.

The Committee also examined and approved a protocol amending Section 28(6) of the Agreement between Sri Lanka and India for the avoidance of double taxation and the prevention of fiscal evasion. This agreement, signed at the Government level in India on 16 December 2024, aims to strengthen tax cooperation between the two countries.

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