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

Flour

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.

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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.

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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.

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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.

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