Heavy tax for imported wheat flour - Minister

Uditha Kumarasinghe and Irangika Range

Trade, Marketing Development, Co-operatives and Consumer Services Minister Bandula Gunawardane told Parliament yesterday the quantity of wheat flour required for the annual consumption of the country is 850,000 metric tonnes.

According to the data available in 2008, 99 per cent of wheat has been imported as grain. Therefore, it is obvious that almost the total flour requirement is produced locally, he said. The Minister said taxes are levied for flour that is imported to this country. At present a Rs. 16 import duty has been imposed on a kilo of imported wheat flour.

In addition a 15 percent surcharge, 5 per cent port and aviation levy, 1.5 per cent social responsibility levy, 5 per cent Cess and 3 per cent Nation Building tax are also charged.

A sum of Rs. 427.3 million has been collected from the taxes imposed on imported wheat flour with effect from year 2005 to June 30 this year.

Meanwhile, taxes have also been imposed on the imported wheat grain.

At present a Rs. 10 Import Duty is levied per on kilo of imported wheat grain including 5 per cent port and aviation Levy, 1.5 per cent Social Responsibility Levy and 3 per cent Nation Building tax.

Surcharge on import tax and Cess are not applicable for wheat grain.

Rs. 14,340 million has been collected from the taxes levied on imported wheat grain with effect from year 2005 to June this year. The Minister was responding to a question raised by JVP MP Ranaweera Pathirana.