Friday Nov 15, 2024
Friday Nov 15, 2024
Wednesday, 19 April 2023 00:58 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
In a bid to encourage manufacturing industries, the Government has decided to gradually relax non-Custom levies imposed on imports to facilitate local and international trade, whilst introducing key reforms to enhance external trade.
The Cabinet of Ministers on Monday cleared a proposal to submit the draft regulations under Ports and Airport Development Levy Act No. 18 of 2011 to the Parliament.
The move was a 2023 Budget proposal to gradually remove other taxes imposed on imports that are not customs levies, such as the Ports and Airport Development Levy and the levy imposed under the trade goods export concessionary scheme, to support and facilitate promotion of the manufacturing industry and to remove barriers for international trade and local industries such as agriculture and projects.
“As per the terms of Ports and Airport Development Levy Act No. 18 of 2011, an order has been issued releasing 1,631 products to the Government as a precautionary measure. These items were chosen based on the risk of losing a minimal income,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday.
The initiative has been recognised as a prerequisite action that should be performed as a part of the World Bank Development Policies Financing Program.
He said it is expected to balance the impact on the State income from enacting such customs import levies.
The Cabinet of Ministers also approved a proposal to table several regulations issued under Special Commodity Levy Act, No. 48 of 2007.
These regulations include: order issued under section 2 of the Special Commodity Levy Act, No. 48 of 2007 and published in the extraordinary gazette notification No. 2308/17 of 30 November 2022, order issued under section 2 of the Special Commodity Levy Act, No. 48 of 2007 and published in the extraordinary gazette notification No 2313/34 of 4 January 2023, order issued under section 2 of the Special Commodity Levy Act, No. 48 of 2007 and published in the extraordinary gazette notification No. 2316/28 of 25 January 2023, order issued under section 2 and section 5 of the Special Commodity Levy Act, No.48 of 2007 and published in the extraordinary gazette notification No. 2320/04 of 20 February 2023, order issued under section 2 of the Special Commodity Levy Act, No. 48 of 2007 and published in the extraordinary gazette notification No. 2321/76 of 4 March 2023, order issued under section 2 of the Special Commodity Levy Act, No. 48 of 2007 and published in the extraordinary gazette notification No. 2322/20 of 7 March 2023, order issued under section 5 of the Special Commodity Levy Act, No. 48 of 2007 and published in the extraordinary gazette notification No. 2322/21 of 7 March 2023 and order issued under section 2 and section 5 of the Special Commodity Levy Act, No. 48 of 2007 and published in the extraordinary gazette notification No. 2323/40 of 17 March 2023.
The Cabinet of Ministers also approved submission of Import and Export (Control) Act No. 1 of 1969 prepared and published in the gazette extraordinary No. 2324/45 on 24 March as the Import and Export (Control) Regulations No. 06 of 2023 to the Parliament for approval.
However, Gunawardena said the Government will not relax the import restrictions like they would open the floodgates, but on a gradual process considering the economic circumstances of the country.
In addition, the Cabinet of Ministers approved to table the Sri Lanka Export Development Act No. 40 of 1979 to the Parliament.
All proposals to this effect were submitted by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation, National Policies and Investment Promotion Minister were approved by the Cabinet of Ministers at its meeting on Monday.
