Mangala gets approval to set up bonded warehouses

Thursday, 24 May 2018 00:00 - - {{hitsCtrl.values.hits}}

Finance Minister Mangala Samaraweera yesterday (23 May) received Cabinet approval to establish bonded warehouses for pharmaceuticals, dairy products, renewable energy and solid waste management industries to expand investment.

A bonded warehouse is a customs-controlled warehouse for the retention of imported goods until the duty owed is paid. The Cabinet paper presented by Samaraweera said that the proposal was outlined in Budget 2018.

Under the Budget proposal, it was proposed to give tax relief for capital investment imports made by these industries, and to establish bonded warehouses to reduce time lapses in getting customs release for the necessary materials.

“The aim is to provide relief to local companies engaged in these industries, so that they may expand their investment,” the notification released by the Government Information Department said.