Sri Lanka abolishes wheat flour import licensing, hikes tax

Sri Lanka
By Editor_1
-Wikipedia

COLOMBO – Sri Lanka has ended a wheat import duopoly by abolishing import licences from Tuesday (29), and permitting flour imports again at a slightly reduced tax.

The controversial import licences recreated a duopoly in wheat imports by giving a protected market to two wheat milling companies, opposition legislators charged.

The parliament’s Committee on Public Finance also raised the matter, saying milling grain in Sri Lanka led to large tax losses, high profits for millers and high prices for consumers.

State Minister for Finance Ranjith Siyambalapitiya said the licensing scheme has been abolished with effect from Tuesday midnight, and that wheat grain imported by the two milling companies will now be taxed at 6 rupees a kilogram instead of the earlier 3 rupees.

Import duty on wheat flour has been raise to 27 rupees a kilogram or 20%. Wheat flour also has a 10% Port and Airport Levy and 2.5% social contribution levy.

Wheat flour from Pakistan can be imported minus the import duty only.

Opposition legislators have charged that total taxes were around 35% at current market prices. Wheat flour is sold around 210 rupees kilogram.

-economynext.com

 

Editor_1
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