Sri Lanka places sweetened milk and cream on 2.5-pct para-tariff band
ECONOMYNEXT – Sri Lanka has placed sweetened milk and cream on a 2.5 percent band of an import para-tariff known as the Port and Airport Levy (PAL), according to a gazette notice.
HS Codes 0402.10 (powder and granules with fat content below 1.5-pct), 0402.21 (full cream powder, low fat milk, and non-fat skimmed) and 0402.29 (other) had been placed on the 2.5 percent band, in an order issued under Sri Lanka’s Port and Airport Development Levy Act.
According to Sri Lanka Customs schedule milk powder with added sugar drew a 10 percent PAL.
Milk powder with added sugar in addition is slapped with a 225 rupee a kilogram or 20 percent import duty and an 8 percent VAT.
Milk powder without added sugar is HS Code 0402.
Milk powder is taxed 15 percent general duty and 10 percent PAL and another 15 percent para-tariff called a cess.
Sri Lanka taxes dairy products at high rates to enable domestic producer import substituting Mercantilists, generally now known as ‘cronies’ with political connections to gauge customers with high prices.
Sri Lanka’s central bank, by printing money and creating forex shortages have allowed the so-called ‘cronies’ to justify price gauging by peddling a claim that they help ‘save foreign exchange’. (Colombo/Mar05/2021)