Export tax for tea, rice and minerals increased

By Paneetha Ameresekere | Published: 2:00 AM Jan 21 2021
News Export tax for tea, rice and minerals increased

By Paneetha Ameresekere

The Government has imposed a series of export taxes ranging from a mere rupee per kilo to Rs 24,200 per metric ton (pmt) covering products such as rice exports to mineral exports.

These tax directives, issued by Trade Minister Dr.Bandula Gunawardane by Gazette Notification dated 12 January.

The taxes included a tax of Rs 1,100 per metric ton (pmt) on the export of broken concrete, Rs 3,300 pmt cess of stones exports and Rs 10 per kg on tea exports, Sri Lanka’s fourth largest foreign exchange (FX) earner. According to latest data, Sri Lanka exported 293 million kilos of tea in 2019. 

Therefore, if Sri Lanka exports a similar quantity of tea this year, the Government would be richer by Rs 2.93 billion in tax revenue because of this new tax.

Some of the other taxes include Rs four a kg on rubber exports, export of metal waste covering steel to copper, a 50 per cent export cess, 10 per cent export cess on hide (bovine) exports and a cess of  Rs 500 per kg or 75 per cent, whichever is more, on other hide exports.

A Rs 10,000 pmt cess on graphite exports,  Rs 7 per unit cess on cashew and coconut kernel exports,  a Rs one per kg cess on corn exports,  cess of  Rs 1,650, Rs 2,200 and Rs 1,100 pmt each on ilmenite,  rutile  and other titanium ore exports.

Rs 12,000 per cubic metre (pcm)  cess on sandstone exports, a Rs 24,200 pcm  cess on granite exports, a Rs 24,200 pmt cess on emery, natural corundum, natural garment and other natural abrasives exports,  a Rs 4,400 cess on rock phosphate exports.

A Rs 1,250 pmt cess on Silica sands and quartz sands wastes exports, Rs 5,000 pmt cess on the export of other clayey sands including kaolin sands and fedlspathic sands, among other export cess covering more items.  

By Paneetha Ameresekere | Published: 2:00 AM Jan 21 2021

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