Sri Lanka slightly lowers import duty on virgin coconut, babassu oil
ECONOMYNEXT – Sri Lanka has slightly cut the taxes on virgin coconut oil and palm kernel oil from levels seen earlier, as the economy is being hit by import controls slapped in the wake of monetary instability, despite being one of the global leaders in the control of Coronavirus.
The Finance Ministry said import taxes on crude coconut oil and virgin coconut oil would be lowered by 25 rupees from the levels set in the June Gazette notice.
In June, taxes on virgin coconut oils were set at 150 rupees per kilogram, other bulk 175, palm kernel and babassu oil at 250, and 275 rupees a kilogram.
Babassu oil is used in cosmetics.
Sri Lanka has also cut the tax on margarine, used in the production of biscuits, bakery and confectionary items.
Margarine and fractions of vegetable oils were slapped with a 600 rupee tax after monetary instability from March, April money printing bout de-stabilized the external sector and raised fears of sovereign default, earning the country a credit downgrade.
The Finance Ministry said the taxes would be reduced by 440 rupees and 400 rupees per kilogram. (Colombo/July20/2020-sb)