Feb 07, 2013 (LBO) – Sri Lanka Planters Association representing large tea growing companies welcome a reduction in a sudden hike in a tea export tax, which was sprung on the industry with no warning or consultation. Sri Lanka’s authorities have a habit of imposing taxes through gazette on citizens without consultation violating fundamental principles of parliamentarism and governance.
Chairman of Sri Lanka’s Planters’ Association Lalith Obeyesekere said the minister of plantations industries had intervened with the President to reduce the cess tax which had been almost doubled.
[W]hile we appreciate and commend this laudable gesture by His Excellency the President and the Hon. Minister of Plantation Industries, we trust that any future regulatory or fiscal changes would be made in consultation with the line Ministry, the Sri Lanka Tea Board and the Industry Stakeholder Associations,” the PA said.
The tax will not be applied at a rate of 2.5 percent of the net sale average for ‘bulk tea’ calculated every quarter.