Archives

Govt. reimposes import surcharge

The Government yesterday reimposed the 40 per cent surcharge on imported goods which was earlier imposed on February 20 last year, Minister of Rural Economy and Deputy Minister of Finance Bandula Gunawardane said in a media release last night.

The surcharge will be effective till March 31 this year.

However, essentials such as wheat flour, sugar , potatoes and other consumables such as coconuts, infant milk foods have been exempt from this surcharge.

Over thousand imported items which are considered essential as raw materials for domestic production have also been exempt from this surcharge.

Minister Gunawardane also said that this reimposition of the surcharge will be a temporary one until the UNF Government presents its Budget in Parliament in March at which time when the Government will review its taxation policies and reinstate a more prudent tax regime.

The release said:"The PA Government imposed a 40 per cent surcharge on imported goods with effect from February 20 to December 31 this year by gazette notification which resulted in an additional revenue Rs.5 billion for the state coffers, though there was a decline in imports.

Therefore, this 40 per cent increase in surcharge will be applicable to all non essential products which will generate an additional Rs.3 billion in tax levies. Moreover, this will also facilitate an environment to increase in domestic products.

It is also envisaged that this reinstatement of the surcharge will not only control the foreign exchange outflows, but will also ease the pressure on the Balance of Payments. It will also enhance the foreign reserves. 

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager