The government revenue will be boosted by around Rs. 27 billion annually due to the revised tax on sugar, which was increased from 25 cents to 50 rupees per kilogram, Minister of Trade Nalin Fernando said. 

Addressing the media on Thursday (Nov 09), Minister Fernando presented data justifying the latest tax increase on sugar.

While it is considered a measure by the government to boost its revenue to prove its commitment to an International Monetary Fund (IMF) deal, the minister said the move is important to meet government expenditures and payments for vulnerable people.

The Minister of Trade further revealed that the government imports 45,000 metric tons of sugar a month and that the tax at Rs. 50 can be calculated by the people. 

The government increased the import levy on Sugar from 25 cents to 50 rupees per kilogram overnight with effect from November 04, 2023. 

The tax revision has raised concerns that the move had benefitted certain businessmen, while it had also brought to light the possible leak of information on the tax revision even before it was presented to the Cabinet for approval. (NewsWire)

The post Sugar tax : Govt reveals expected annual revenue appeared first on Newswire.

Concerns have been raised over the alleged leaking of tax-related decisions before it was announced by the government after many companies were found to have benefitted before the imposing of the recent sugar import levy.

Chairman of the Committee on Public Finance (COPF) MP Harsha de Silva pointed out that several companies had made super gains due to the tax changes. 

MP de Silva said that the COPF issued a directive today instructing the Ministry of Finance to impose income tax on companies that had made super gains concerning the sugar import levy.

“Based on Customs data, it was revealed that certain companies which usually import only 2,000 MT of sugar monthly, imported 10,000 MT of sugar just before the tax increase of 200-fold, from 25 cents to Rs. 50. This alleged exploitation must end,” MP de Silva said taking to ‘X’.

The COPF Chairman further said that the authorities must compensate for lost revenue and prevent such incidents in the future. 

“This kind of manipulation can’t be ignored. Specific companies allegedly exploited the system, reaping massive gains. I emphasized the importance of eliminating ‘midnight gazettes’ in line with @IMFNews recommendations. Let’s work together to ensure a fair & just system for all,” he added.

Meanwhile, Minister of Labour and Foreign Employment Manusha Nanayakkara has called for an inquiry into the possible leak of information about the sugar import levy before it was announced by the government.

Addressing the media, Minister Nanayakkara said it has been observed that several businessmen had received information on the tax change before it even being presented to the Cabinet of Ministers. 

Stating that only Sri Lanka Customs officials were aware of the tax revision, the minister said, “The question we have to find the answer for is how that information reached those businessmen. I am sure that information does not leak from the Cabinet.”

“As soon as the government decides to impose a tax, some businessmen import those items. When the government decides to reduce tax, this same group hides those specific items. There is a group that always gains profit from changes in taxes. That is why the President set a maximum retail price for sugar. With that decision, it will not be possible to gain profits from this tax increase,” he added. (NewsWire)

The post Sugar import tax : Concerns raised over alleged information leak appeared first on Newswire.

The import tax imposed on maize has been revised, State Minister of Finance Ranjith Siyambalapitiya said on Friday (Aug. 18).

According to the State Minister, the import tax of Rs. 75 on 1 kilogram of maize was reduced to Rs. 25 from last night.

State Minister Siyambalapitiya said that the measure was taken with the aim of reducing the price of animal feed produced using maize. (NewsWire)

The post Import tax on maize revised appeared first on Newswire.

The government has revised the import tax imposed on cement, with an increase in prices effective from June 17.

According to the Investment Promotion Ministry, the CESS levy imposed on 1kg of artificially coloured and uncoloured cement has been increased from Rs. 3.00 to Rs. 5.00.

The CESS tax on other Portland cement imported in packaging of 50kg and below has been increased from Rs. 5.00 to Rs. 8.00.

Meanwhile, the CESS tax on other Portland cement imported in the packaging of over 50kg or bulk has been increased from Rs. 3.00 to Rs. 5.00. (NewsWire)

The post Import tax on Cement increased appeared first on Newswire.