To stabilize milk powder prices:

Import duty slashed

Chaminda PERERA

In a bid to keep the retail price of packeted milk powder stable in the local market, the import tax on packeted milk powder has been reduced by Rs 22 per 1 kilo packet with effect from yesterday.

According to Trade and Cooperatives Minister Johnston Fernando, the price of one Metric Tonne of milk powder has increased from US$ 3,500 to US$ 3,900 in the world market and the Government's decision to reduce the import tax will prevent the possible price increase in the local market.

Minister Fernando added that the Ministry has received a number of requests from milk powder importing companies for a price increase. He added that the prices of packeted milk powder will not be increased under any circumstances.

The Treasury has reduced the tax on one kilogram of milk powder from Rs 50 to Rs 28, he added.