Sri Lanka reduces sudden hike in tea export tax

Feb 06, 2013 (LBO) – Sri Lanka’s rulers have reduced a near doubling of an export tax on tea imposed without consultation of the affected parties on a retroactive basis, following protests from the industry. Sri Lanka’s tea industry found late last week that a higher tax on tea exports had been imposed with effect from January 23, which neither the industry nor industry regulatory agency seemed aware of.

Sri Lanka’s Tea Export Association (TEA) said following an appeal to the minister of plantation industry that cess tax hike has been limited to 2.5 percent of Colombo auction average (from an earlier 10 rupees) or 10 rupees whichever is higher and the effective date has been made March 01.

The tax will be revised quarterly based on average auction prices.

Sri Lanka’s rulers have a habit of raising taxes suddenly by midnight gazette after deciding on them secretly literally while citizens are sleeping fundamentally violating a principle of liberty established in free countries with parliaments.

The principle of ‘taxation by consent’ was among the first liberties of subjects established with the Magna Carta in Britain in the 13 century and further strengthened by Britain’s bill of ri