Temporary tax concessions on essential items and more from the Govt

Temporary tax concessions on essential items and more from the Govt

Temporary tax concessions on essential items and more from the Govt

Written by Lahiru Fernando

01 Aug, 2017 | 7:14 pm

The Cabinet Sub-Committee on Cost of Living has made temporary changes to the taxes on a number of essential items.

They have also announced the distribution of a bag of essential items worth Rs.5000 will be to those affected by the drought for the next two months.Taxes have been removed on 47 essential items including rice, sugar, potatoes, big onions and replaced them with a special commodities tax.

The temporary changes are as follows;

The Special Commodity Levy for one kilogram of imported rice has been reduced from five rupees to 25 cents. The newly announced commodity levy will end on December 31.

The Special Commodity Levy for imported wet fish has been reduced from Rs.50 a kilogram to Rs,10 a kilo with effect from today,  and will be in effect for the next three months.

All duties imposed on corn used in chicken food products have been removed and replaced with a ten rupee Special Commodity Levy from today onwards and will be in effect for the next six months.

Until now, the tax on corn included;

Import Tax – 15%
VAT – 15%
Port and Airport Tax – 7.5%
Nation Building Tax – 2%
CESS tax – 35%

All these taxes on corn tallied up to around Rs. 60/- to Rs. 70/- in taxes.

Ten rupees have been reduced from the CESS tax of a kilogram of wheat flour, thereby reducing the tax from Rs. 25 to Rs.15.

The above changes will come into effect in the coming days.

The Finance Ministry further notes that the required tax amendments would be made for local food products when entering the market to protect the farmer.

These decisions have been taken under the directive of President Maithripala Sirisena. They were announced by Minister of Finance and Mass Media, Mangala Samaraweera.

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