Saturday Dec 21, 2024
Saturday Dec 21, 2024
Saturday, 21 December 2024 01:12 - - {{hitsCtrl.values.hits}}
The Government has decided against revising the Special Commodity Levy Act No. 48 of 2007, reaffirming its commitment to maintaining the existing levy structure for essential goods.
The Cabinet of Ministers at their meeting on Wednesday approved the proposal presented by President Anura Kumara Dissanayake in his capacity as the Finance, Planning and Economic Development Minister to remain the levy rates in effect unchanged till 1 January 2025.
The Special Commodity Levy Act was introduced to simplify taxation on 63 essential goods, including staple food items, by consolidating multiple taxes into a single composite levy.
On 25 March 2024, the Cabinet had approved a decision to revise the Act, to introduce additional taxes as Value Added tax (VAT) on these goods.
“However, concerns about the potential adverse effects of the revision, particularly its impact on local farmers and market prices have led the Government to reconsider,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at the weekly post-Cabinet meeting media briefing on Thursday.
He highlighted that the Special Commodity Levy remains critical to balancing the needs of consumers and domestic producers. “Imposing additional taxes could undermine the livelihoods of local farmers by exposing them to unfair competition and such revisions might lead to increased market prices for essential food items, compounding the financial burden on consumers,” he explained.
The Cabinet Spokesman said by retaining the existing structure, the Government seeks to safeguard the farmers, whilst maintaining affordable prices for essential commodities.
However, under International Monetary Fund (IMF) agreement, Sri Lanka pledged to abolish the Special Commodity Levy and replace tax with VAT.
