Sri Lankan government slashes import tax on potatoes
The government of Sri Lanka has taken measures to slash a protectionist tax of Rs. 50 a kilogram on imported potatoes to Rs. 25 per kilo.
The import tax on potatoes was introduced to boost the earnings of the local farmers. However, the increasing prices of potatoes in the local market have now compelled the government to reduce the tax on imports to encourage potato imports.
Sri Lanka’s Finance Ministry announced that lower tax on imported potatoes has been effective from December 25.
Sri Lanka’s Finance Minister Mahinda Rajapaksa had issued a gazette notice from midnight December 25 announcing the reduction of import taxes as vegetable prices continued to increase.
According to the government of Sri Lanka, domestic potatoes would flow in to the market from around February and farmer profits would not be hurt by the tax cut.
OSL tax:
The slashing of import taxes on potatoes has opened up a potential business opportunity for a foreign company to supply potatoes to the local market. Given Sri Lanka’s geographical positioning in the Indian Ocean, supplying goods to the country could be carried out with ease.
| Article Code : | VBS/AT/20200203/Z_3 |