Sri Lanka announces import taxes for leaf-springs, aluminium hardware
ECONOMYNEXT – Sri Lanka has announced a series of taxes to keep prices of some goods high and increase profits for manufacturers, as many imports are controlled after printing money unprecedented amounts of money.
Leaf-springs will be taxed at 30 percent or 100 rupees a kilogram (leaf-springs are dense), aluminium structures and frames including windows 30 percent or 300 rupees a kilogram (aluminum is light), electric motors 30 percent or 330 rupees a unit and batteries 30 percent or 165 rupees a kilogram.
Sri Lanka has been promoting geriatric non-export competitive industries for many years allowing them to collect profits from tax-arbitrage and halting natural export diversification by making inputs expensive.
Electric car batteries would be allowed in duty free.
Non-alcoholic beverages would be taxed at 440 rupees a litre, palmyrah toddy 440 rupees a litre, palmyrah arrack 2750 rupees a litre and papadam 30 percent or 250 rupees per kilogram.
Ciggarettes (including those with Ceylon Cinnamon) are taxed at 250 percent or 1,760 per kilogram gross weight.
Trailer and semi-trailers either below three or more than three years old would be taxed at 30 percent.
Chlorindated derivatives of methane and propane (CFCs), glyphosate and some other herbicides would be allowed in duty free, as would baby cologne. Baby cologne is widely used to treat fever patients.
Asbestos – Chrysotile is allowed duty free, crocidolite at 15 percent.
Capsules used to make pharmaceutical or cosmetic products would be allowed in duty free, collapsible toothpaste tubes with or without caps would be allowed in at 15 percent.
Kraft paper and handkerchief would be allowed in duty free.
Utility vehicles for state-run Ceylon Electricity Board and its subsidiary companies, and items for power generation including for solar and wind power brought under any agreement with the government of Sri Lanka and lenders would be exempted. (Colombo/June28/2020)