An Echelon Media Company
Tuesday January 25th, 2022
Energy

Sri Lanka CPC has asked for reduction of Rs42 tax on petrol: Minister

ECONOMYNEXT – Sri Lanka’s state-run Ceylon Petroleum Corporation has asked for a tax reduction on retail fuels or a tax increase to offset higher world prices, Petroleum Minister Udaya Gammanpila said.

Opposition legislator Hesha Vitharana said the government now charged taxes totalling 14 rupees a litre from diesel, 38 rupees from super diesel, 42 rupees from Octane92 petrol and 65 rupees from 95-Octane petrol and whether any reduction would be made.

Minister Gammanpila said the taxes quoted by the legislator were broadly correct.

“There can be about a rupee difference because the port the and airport levy (PAL) of 7.5 percent is charged on value as a percentage,” he told parliament.

“We have asked for a tax reduction or a price increase.”

He said the CPC had lost 70 billion rupees in the 10 months to October after paying the taxes.

“All countries charge taxes from goods with inelastic demand,” Gammanpila said. “I may also say that Sri Lanka is the only country that has not raised prices in the last six months.”

Petroleum is a key source of taxes in many countries while green energy gets subsidies at the expense of taxpayers.

An attempt by environmentalist interventionists to charge an additional ‘carbon tax’ from fuels that were already taxed to the hilt led to so-called yellow protests in France.

Sri Lanka however taxes diesel, which has more carbon and pollutants at a lower rate than unleaded petrol, which is cleaner, encouraging its use.

Instead of fixing diesel taxes, environmental interventionists tried to charge an additional ‘carbon tax’ from old cars.

Instead of fixing the problem of diesel vehicles, interventionists are also attacking the power grid. (Colombo/Dec01/2021)

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