Sri Lanka cuts taxes on consumer goods, building material, cars - Update
Jan 29, 2015 18:02 PM GMT+0530 | 6 Comment(s)
LAST LAUGH: Finance minister Ravi Karunanayake, Prime Minister Ranil Wickramasinghe sharing a lighter moment with Speaker Chamal Rajapaksa Thursday.
COLOMBO (EconomyNext) - Sri Lanka cut taxes on over a dozen consumer goods ranging from sugar, milk powder and canned fish in the interim budget for 2015 presented by Finance Minister Ravi Karunanayake and removing Customs duties on cement and steel
The government is expected to lose 92.4 billion rupees as a result of these reductions, but one of taxes were slammed on large corporates, telecom firms and television channels, but the revenue deficit deteriorated despite the new taxes.
The tax on sugar will be reduced by 10 rupees to 18 rupees a kilogram bringing the retail price to around 85 rupees a kilogram.
He asked milk powder firms to reduce the price of a 400 gram pack by 61 rupees to 325 but said taxes will remain the same.
A 400 gram tin of Sustagen will be reduced by 100 rupees with the waiver of a 15 perent customs duty tax.
But domestic dairy farmers will see guaranteed prices for liquid milk increase by 10 rupees to 70 rupees, resultng in higher prices for dairy products and liquid milk.
Import taxes on wheat grain will be reduced by 10 per kilogram which will lead to reduction in price of wheat flour by 12.5 rupees per kilogram, he said. A loaf of bread will be reduced by six rupees.
Taxes on greengram will be reduced by 30 rupees to 10 rupees per kilogram.
A kilogram of sprats will be reduced by 15 rupees to 11 rupees, and the tax on canned fish will cut from 102 rpees to 50 rupees.
Coriander, a popular remedy for influenza will see taxes fall to 26 rupees 40 rupees.
Black gram, popular among minority Tamil community will see taxes cut from 110 to 60 rupees. Taxes on black gram flour will be reduced from 300 to 200 rupees a kilogram.
Taxes on Maldives fish will be reduced by 200 rupees to 102 rupees a kilogram.
The tax on turmeric will be reduced by 100 rupees to 102 rupees a kilogram and on crushed turmeric the tax will be reduced by 150 rupees to 360 rupees a kilogram.
Crushed chilies taxes will be reduced by 25 rupees to 125 rupees a kilogram.
The government cut taxes on items as well.
The import of vehicles below 1,000cc engine capacity will see a 15% tax reduction.
Customs duty on cement and steel billets will be removed.
The registration fee for marriages has been reduced to 1000 rupees from 5,000 rupees.
Mobile telecommunication service providers have been requested not to pass-on the 25 percent tax on prepaid consumers.