Import tariff band hiked by 5%; para tariffs to be phased out

The Government yesterday proposed a 5% hike in the import tariff band whilst announcing the phasing out of para tariffs from 2023.

Presenting the 2023 Budget President and Finance Minister Ranil Wickremesinghe revealed that CESS levy will be eliminated on a phased basis in three years starting from 2023 whilst the Ports and Airports Development Levy, will be phased out in five years.

He said the objectives of these moves include promotion of the manufacturing industry, removing existing barriers to international trade, and providing the necessary incentives and facilities for local industries and projects including agriculture.

The revision of the current rates of Customs Import Duty from 0%, 10% and 15% to 0%, 15% and 20% was also announced to accommodate the proposed phasing out of para-tariffs/levies effective from 1 January 2023.

Relevant work in this connection is being done to introduce a Trade Adjustment Program as well. “However, the proposed tax policy will be implemented in such a way that it does not interfere with CESS levy on agriculture-based value-added industries,” the President added.