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ECONOMYNEXT – Sri Lanka’s President Ranil Wickremesinghe has Minister of Finance has removed a border tax called the Ports and Airport Levy from imported diesel, petrol, liquefied petroleum gas and chemical fertilizer, according to a gazette notice.
Sri Lanka is bringing more items under value added tax from January 1, 2024, as part of reforms to boost the tax system.
With value added taxes being charged on fuel, petrol, diesel and LPG prices were hiked from January 01.
The PAL is being lifted from January 01.
The removal of PAL, a so-called para-tariff, which is not recoverable, can make economic system more efficient by making domestically produced goods more export competitive, analysts say.
Sri Lanka is committed to removing para-tariffs including another CESS, over time.
Due to Sri Lanka’s extensive system of trade protection, unless a company is a specialist exporter, a range of taxes come on inputs.
(Colombo/Jan01/2024)
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