Tax for imported rice reduced with immediate effect

Saturday, 7 January 2017 00:00 - - {{hitsCtrl.values.hits}}

The Government announced yesterday that tax on imported rice has been reduced with effect from midnight last night in order to bring relief to the people affected by the current soaring rice prices due to drought.

According to a statement issued by the Director General of the Trade and Investment Policy Department, this decision was taken by the Cabinet sub-Committee on Cost of Living which met yesterday at the Ministry of Finance.

Finance Minister Ravi Karunanayake, Special Task Force Minister Dr. Sarath Amunugama, Fisheries and Aquatic Resources Minister Mahinda Amaraweera and Industry and Commerce Minister Rishard Badiudin were on this Committee.

The soaring prices of rice in the current market were widely discussed at the meeting.

Accordingly, Customs duty of Rs. 50, 15% VAT, 7.5% Port and Airport Levy and 2% Nation Building Tax per kilogram of rice have been removed. However, a special commodity levy of Rs.15 per kilogram of imported rice will be imposed instead. This move will be effective from today.

Taxes have been reduced for rice varieties such as Samba, Nadu and Brown raw rice. However, tax reduction is not applicable to imported Basmati.

The Cabinet sub-Committee on Cost of Living has taken this decision as a measure to bring relief to the people. Rice prices have been increased due to the prevailing dry weather in the country.

This will simultaneously prevent, the statement said, the unscrupulous traders who hoarded rice stocks and created an artificial shortage in the market to exploit the consumers.