Revision of Cess on clinker and cement imports

Friday, 20 December 2024 00:29 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Wednesday approved submitting a previously issued directive on Cess duty for Parliamentary approval.

The directive, initially published in the Extraordinary Gazette No. 2400/25 on 5 September 2024, under Section 14 of the Sri Lanka Export Development Act No. 40 of 1979 was introduced by the then Investment Promotion Minister, with the concurrence of the then Finance Minister. It was aimed at revising Cess duties on specific imports and exports to align with industry needs and environmental considerations.

Key provisions of the directive were to curtail Cess duty by Rs. 1 per kilo on the import of clinker, bulk cement, and bags in retail packaging of cement, and export of granite blocks up to one million tons and impose and charge a Cess duty of Rs. 1,000 per 1 cubic metre subject to the recommendation of the Secretary in charge of the Environment Ministry for construction.

It was noted that the directive was designed to balance industrial growth and environmental sustainability by incentivising certain imports, while regulating the export of natural resources.