Sri Lanka suspends export tax on tea for 6-months
ECONOMYNEXT – Sri Lanka has suspended an export tax on tea for six months to help the tea sector as it recovers from a Coronavirus crisis, Minister Ramesh Pathirana said.
Sri Lanka charged a 3.50 rupee tax a kilogram ‘cess’ tax on tea exports to build a fund which is used for developing the tea sector.
The balances in the fund will also be used to promote the Ceylon Tea brand internationally he said.
Minister Pathirana said the tax was suspended for a while to help boost exports.
Sri Lanka’s tea prices soared in April after tea auctions resumed but prices have since eased.
Sri Lanka’s tea prices are high due to strong low grow tea bought mainly by the Middle East and also some Central Asian countries. (Colombo/Jun21/2020-sb)