- Cabinet approves import duty and levy revisions to support local industry and trade
In a significant policy decision aimed at boosting local industry and addressing stakeholder concerns, the Cabinet of Ministers on Monday approved a series of import tax and levy revisions.
The revisions, which affect the Customs Import Duty (CID), CESS levy, Special Commodity Levy, and Ports and Airports Development Levy (PAL), are expected to boost various sectors of the economy.
The key changes include:
- To exempt certain imported goods which are subject to special commodity tax and included in the general import tax structure including customs Import Duty
- To revise Customs Import Duty for brown sugar
- To revise Customs Import Duty on footwear, packaging, electrical machineries, plastics and raw materials and intermediate goods belonging to the rubber industry under 225 customs codes on the recommendations of the Ministry of Industry to empower the local industry.
- To reduce the duty on baby and adult waste absorbents (diapers) and material thereon.
- Govt. gives...
- To introduce the tax revisions applicable for minimisation of plastic usage recycling.
- To remove existing import levy discrepancies in respect of local bicycle and accessory manufacturing industry, printing and printing ink industry, domestic washing machines, lighter manufacturing industry and children’s ready- made garments.
- To introduce new subdivision custom codes for promotion of export the palm and palm related products, and to distinguish electrical operated toys and long pepper (thippili) used in the industry of manufacture of local medicines and to simplify the existing strategy for exemption of CESS levy in importing the raw materials used in the manufacture of local medicines.
These measures proposed by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister was approved by the Cabinet of Ministers to take following steps for implementation of import tax revision.
- To revise customs import tax through issuance of ordinance under Revenue Protection Act No.19of 1962
- To revise CESS levy under Export Development Act No. 40 of 1979
- To impose directives under Special Commodity Levy Act No.48 of 2007
- To take necessary steps under Ports and Airports Development Levy Act No. 18 of 2011 and
Import and Export (Control) Act No 01 of 1969 in compliance with the relevant tax revisions
“These revisions are expected to stimulate local industries, reduce import levy inconsistencies and encourage environmentally sustainable practices,” Cabinet Spokesman and Minister Bandula Gunawardena said at the weekly post-Cabinet meeting media briefing yesterday.
