Steep global sugar price fall will offset Sri Lanka import tax: FinMin
ECONOMYNEXT – A hike in taxes on imported sugar will not require local prices to go up, because global prices have fallen sharply in recent weeks, the Finance Ministry said.
The import cost of sugar was about 63 rupees a kilogram up to the beginning of September and it has since fallen to 52 rupees, the finance ministry said.
An import tax of 31 rupees was imposed when the import cost was 76 rupees the finance ministry said.
Though the tax has now been raised to 42 rupees, the sale price need not go up as import prices have fallen, the statement said.
Sri Lanka’s rupee which is under an unstable soft-peg regime has come under fresh pressure in recent days. (Colombo/Sept21/2018)