Cheaper sugar to kill Rs. 19.3 b in Govt. revenue

Tuesday, 19 July 2016 00:22 - - {{hitsCtrl.values.hits}}

The Government yesterday decided to reduce the special commodity levy on imported sugar by Rs. 29.75 per kilogramme to 25 cents per kilogramme.

The previous special commodity levy was Rs. 30 per imported kilogramme of sugar.

The reduction of the special commodity levy on imported sugar in this manner will help clear the disputes that had erupted after imposing a maximum price on sugar. The existing maximum price of a kilogramme of sugar is now Rs. 95.

Sri Lanka annually imports 650,000 metric tonnes of sugar or 92% of its total requirement. Domestic produce is reported as only 56,000 metric tonnes or 8% of the total requirement.

The Government earned gross annual revenue of Rs. 19.5 billion from the special commodity levy on sugar imports. This revenue income will reduce from Rs. 19.5 billion to a mere Rs. 162.5 million consequent to the reduction of the special commodity levy on imported sugar.

Accordingly, the Government will incur a loss of Rs. 19.34 billion consequent to its decision to reduce the special commodity levy on imported sugar.

The per capita consumption of sugar in Sri Lanka is 31 kg.