Tea CESS suspended for 6 months

Friday, 19 June 2020 00:00 - - {{hitsCtrl.values.hits}}

Cabinet approves proposal to stop charging CESS, promotional campaigns still to be rolled out

Cabinet yesterday agreed to suspend the Rs. 3.50 CESS charged on each kilo of exported tea for six months, to support the tea industry to recover from COVID-19.

Co-Cabinet spokesman Dr. Ramesh Pathirana said the decision was made considering the impact COVID-19 has had on Sri Lanka’s key export markets and the challenges faced by the local industry in continuing exports during the last two months.

The Cabinet of Ministers approved the proposal forwarded by Plantation Industries and Export Agriculture Dr. Ramesh Pathirana to suspend tea promotion and marketing tax of Rs. 3.50 charged on each kilogram of tea exported by each of the registered exporters for a period of 6 months.

“We expect this decision to support the tea industry. The CESS has been charged for a number of years and the fund is doing well. We will continue to roll out the tea promotion campaigns that were to use the CESS funds in the coming months,” he added.