Tax reduction allows Sri Lankan traders to import wheat flour instead of wheat grain


Dec 16, 2019 (LBO) – Sri Lanka’s government has removed the consolidated Tax of 36 rupees per kilogram of imported wheat flour and replaced it with the Special Commodity Levy (SCL) of 8 rupees per kilogram.

This Special Commodity Levy will come into effect from December 14th through a special Gazette notification issued by Prime Minister Mahinda Rajapaksa as the Minister of Finance, Economy and Policy Development.

Up to this point, only wheat grain was imported to Sri Lanka and milled to meet the country’s need for wheat flour for consumption.

As per the decision taken by the Cabinet last week, with the introduction of SCL of Rs 8 per KG of wheat flour, the traders could import wheat flour directly to sell them at a competitive price in the local market.

In order to control the increasing prices of rice in the market the Cabinet of Ministers last week decided to set a maximum retail price of Rs 98/ kg of Samba and Nadu rice while reducing the duty of wheat flour enabling the importation of wheat flour directly.

Accordingly, the all-inclusive duty of Rs 36/ kg of wheat flour has been reduced to Rs 8/ per kg with effective from December 14, 2019.