Import tax changes on wheat flour to safeguard local paddy farmer: Ravi K

Finance Minister, Ravi Karunanayake states that the decision of reducing import tax relief on wheat flour has been taken as a measure to safeguard the local paddy farmer. 

President Maithripala Sirisena and the Prime Minister Ranil Wickremesinghe propose enhancing rice consumption of the country while minimising  wheat consumption as there is excess rice production in the country at present.

The Minister showed that the import tax relief on wheat flour has been reduced based on lowered wheat flour prices at international market and excess rice production of the country. The Minister stated this at an occasion for granting Rs. 100,000.00 as his personal contribution for the development works at Dhawalasinharama temple at Modara and Sri Shakyasinharama temple at Grandpass, held recently (22  March).

The Minister further stated: 

“Though there is excess rice production in the country it could not be exported due to high production cost. Agriculture officers as well as farmers have made request for increasing rice consumption and therefore the import tax relief on wheat flour has been reduced to a certain extent.

President, Maithripala Sirisena as well as the  Prime Minister, Ranil Wickremesinghe are in the view that minimising  wheat consumption is the most appropriate measure to increase rice consumption as a solution for excess rice production. This will prevent discouraging the farmers though there are high costs for rice production.

“This is only an interim measure. We will not burden the farmers until we increase rice exports by minimising the production cost in more productive way “, the Minister further stated.

Rs. 10 in import tax relief has been given for 1 kg of wheat flour by Sri Lanka Customs under the 100 day program of the present Government. However the government has taken a decision to reduce this relief with effect from 09.02.2016 due to increased rice production and  reduced price for wheat flour in the international market. Accordingly the import tax relief which was Rs. 10.00/ per kg of wheat flour has been reduced to Rs. 4.00

Finance Minister  Ravi Karunanayake handed over a Rs. 50,000 financial grant for the development works of the Dhawalasinharama temple, Modara to the chief incumbent Waskaduwe  Sirirathana Thero.

The Minister also visited the  Sri Shakyasinharama temple, Grandpass and  handed over a Rs. 50,000 financial grant  as his personal contribution for the development work of the temple to the chief incumbent Nagahapola Chanawimala Thero and the latter requested to make necessary arrangements to name this temple as a charity Institute. The Minister stressed that he will take the necessary actions to fulfill this request within one week.

Chairman National Lotteries Board  Romesh Jayawardhana, Roy Bogahawatta, Chaminada Aluthgedara and large number of devotees participated at these occasions.