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Sri Lanka protests rise over sudden tea export tax

Feb 01, 2013 (LBO) - Protests over a sudden export tax slapped on tea intensified with a second industry association joining exporters saying the industry was being progressively decimated by authorities.
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The Ceylon Tea Traders Association, an apex industry association, said a tax on tea has been virtually doubled "like a bolt from the blue" adding to earlier protests by the Tea Exporter's Association of Sri Lanka.
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The CTTA the in 2010 an export cess for packages bigger than 10 kilograms was raised 150 percent from 10 rupees from 4.

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00 rupees. A tea promotion and marketing levy of 3.50 rupees was also imposed around the time.
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"Now, like a bolt from the blue, the Industry has just learnt that, retroactively, with effect from January 23, 2013, the export cess on tea in bulk has been enhanced by a further approximately 100 per cent," the CTTA said in a statement.

"The total absence of advance notice of this fiscal levy will have serious repercussions on the Export Trade, the Industry at large and the country," the CTTA said.

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"Exporters will be affected to various degrees, depending on the stage at which export commitments are currently placed, as elucidated below."

The tax has been i

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