The Ministry of Finance today said that special commodity levy has been increased on potatoes and sugar only.
Issuing a media release, the Government Information Department, quoting an official of the Finance Ministry denied media reports that the special commodity levy has been increased on nine food items. Further clarifying the situation the ministry said that this special commodity levy is imposed in lieu of the import taxes such as duty, VAT, PAL NBT etc. in order to maintain a stable price with the aim of protecting producers as well as the consumers.The special commodity levy on several food items is being imposed via special gazette extending it periodically.
Accordingly this gazette notification imposing special commodity tax on several food items was issued on the instructions of the Finance Minister Ravi Karunanayake on Tuesday. Under this new gazette the special commodity levy on imported sugar has been increased by Rs.12 per Kilo and Potato by Rs,10 per kilo.
Special Commodity Levy on all other items inclusive of Dhal, Onion, green peas, chickpeas, cow peas, Kurakkan, Margarine etc. remain unchanged, said the ministry.
If the special gazette notification had not been issued by the Finance Ministry, all food items mentioned in that gazette will be subject to normal import duty and other taxes inclusive of VAT, PAL and NBT effecting a price escalation.