ECONOMYNEXT – Sri Lanka has cut an export tax on tea to 3 rupees a kilogram and abolished a regulation issued in 2010 dealing with the collection and use of the money for promotions, according a government notice.
A gazette notice issued under the hand of the chairman of the agency said Sri Lanka Tea Board (Collection of Levy for Tea Promotion and Marketing Strategy) Regulations, No. 1 of 2010 have been rescinded with effect from December 14.
The regulations set an export cess of 3.50 rupees a kilogram and set restrictions on the use of money.
“On the coming into operation of these regulations, the moneys lying to the credit of the Sri Lanka Tea Board in the designated account referred to in regulation 4, shall be used exclusively by the Board for the purpose of engaging in activities related to tea promotion and marketing strategy, within and outside Sri Lanka Provided that the Sri Lanka Tea Board shall cause to be conducted in such manner as is determined by it, a periodic review by persons who are stakeholders of the tea industry, of the progress made in this regard, once in every two years,” the gazette said.
Minister of Plantations Ramesh Pathirana, had also changed the cess tax to 3 rupees, changing from a 4.00 rupee tax dating back to 2006, before the 2010 gazette.
During the Coronavirus period, Pathirana said the tax would be suspended for a while. (Colombo/Dec15/2021)