News

Sri Lanka to remove another 1000 para-tariffs under trade liberalisation

13 March 2019 - 91   - 0

Sri Lanka is implementing comprehensive unilateral trade liberalisation including the rationalization of para-tariffs which add costs to business and consumers. 

Para-tariffs on imports will be phased out over five years, while products related to tourism, manufacturing, and construction will be free of para-tariffs over three years, Finance Minister Mangala Samraweera told a media conference in Colombo on Wednesday.

Clarifying certain misinterpretation of his 2019 budget proposals, Minister Samaraweera noted that Sri Lanka will abolish para tariffs in around 1000 items but will help domestic industry to reach international markets.

The Treasury is expected to give up Rs. 6 billion in revenue with the removal of para-tariffs, he said adding that 10 per cent of all HS codes, considered to be sensitive items, will not be subject to a complete para-tariff phase-out.

“In fact, 1,200 para tariffs have been removed in the last budget and we have committed ourselves to removing all the 3,000 odd para tariffs while gradually phasing it out para to encourage competition and reduce the cost of living,” the Minister pointed out. 

Budget 2019 proposes to replace the 2.5 per cent existing stamp duty with 3.5 per cent Nation Building Tax (NBT) on overseas payments using credit cards. 

Minister Samaraweera said that this will not affect  local online transactions of companies like Takas.lk, Uber and AliExpress which are not subject to any taxes operating in Sri Lanka.

A 200 per cent cash margin at the time of opening of Letters of Credit to import vehicles has been removed with effect from last Friday, he disclosed.

The Finance Ministry has increased fuel prices which is far below the price computed by using fuel pricing formula with the aim of providing benefits for people during upcoming Sinhala and Tamil New Year festive season, he said pointing out that according to the fuel pricing formula petrol prices should have been increased to Rs. 137 rupees a litre, but it was raised only to Rs. 132. 

Diesel prices should have been hiked to Rs. 117 rupees a litre but it was only increased to Rs. 102, he said noting that the government has intervened to reduce the prices. (Bandula)
 

  Comments - 0

  • Leave a comment





style="display:inline-block;width:300px;height:250px"
data-ad-client="ca-pub-6200193111498313"
data-ad-slot="1999573490">

 

Features & Analysis

LBV and SL High Commission host forum on "Significance of Tripitaka as a World Heritage"

The Sri Lanka High Commission in London in association with the London Buddhist Vihara hosted a scholarly forum ...

5th Goût de France hits Sri Lanka on March 21 

Good France held in over 150 countries will involve chefs and restaurants from around the world celebrating French cu...

“Ahimsa” A Choreographic dance production by Aru Sri Art Theatre

Celebrating 150 years of Mahatma -“Ahimsa”, a choreographic dance production blended together with t...

Daniel O’Donnell and Mary Duff thrill Colombo fans once again

Daniel O’Donnell, one of Ireland’s best known performers who continues to push the boundaries of his care...



style="display:inline-block;width:300px;height:250px"
data-ad-client="ca-pub-6200193111498313"
data-ad-slot="1999573490">