Thursday Nov 07, 2024
FT
Thursday Nov 07, 2024
Wednesday, 27 March 2024 03:07 - - {{hitsCtrl.values.hits}}
The Cabinet of Ministers approved a proposal to instruct the Legal Draftsmen to draft a bill aimed at suspending the Special Commodity Act No. 48 of 2007.
The decision is in response to various challenges encountered during the implementation of the Act, leading to its suspension.
Speaking at the post-Cabinet meeting media briefing yesterday, the Cabinet Co-Spokesman Bandula Gunawardena highlighted the necessity of suspending the Act, citing various issues such as the recent sugar scam, which exposed loopholes within the legislation.
He claimed that many traders exploited these loopholes via malpractice in commodity importation by undervaluing them, resulting in revenue losses for the Government coffer.
“The objective is to abolish the existing legislation and introduce a more internationally accepted and rational levy system to boost State revenue,” Gunawardena explained.
The Special Commodity Act imposes a tax known as the Special Commodity Tax on 64 commodities categorised under HS Code 210 to facilitate their importation. However, due to its shortcomings and susceptibility to exploitation, the Cabinet has deemed it necessary to suspend the act and explore alternative measures to ensure fair and efficient revenue collection.
The proposal to this effect was submitted by President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation and National Policies subsequently approved by the Cabinet of Ministers.
