Friday, 29 May 2020 18:03

Sri Lanka’s Economic Revival Plan introduces a new tax policy

Economic Revival Plan of the Interim Government was launched to revive the economy and reduce the COVID-19 impact.

As part of its efforts the Finance Ministry has eased import restrictions on several product categories linked to exports and production of import substitution goods but retained the ban on vehicles.

Accordingly imports of motor vehicles, including motor cars and three wheelers continue to be banned along with imports of ethanol, furniture, and aluminium products among others.

The interim guidelines aimed at revising Sri Lanka’s external trade and customs-based tariff policy was sent to Customs Director General Major Gen (Retd) Vijitha Ravipriya by President’s Secretary Dr. P.B. Jayasundera.

The main thrust of the Government strategy is to create an export-oriented production base while facilitating domestic import substitution industries, which should also aim at strategy going beyond local market over the medium term.

Under this policy, local import substitution industries, such as cement, steel, furniture, ceramics and other products needed for the construction industry, are to be encouraged

The aim is to meet the demand of flagship investment projects, such as the Port City construction, Hambantota Economic Zone, and other industrial zone requirements, including food and other needs of workers.

Prime Minister, Mahinda Rajapaksha in his capacity as the Minister of Finance presented the Interim Trade and Customs based Tax Policy Framework to the cabinet recently.

(LIN)

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