Ceramic exporters are calling on the government to extend the LP gas tax cuts to other types of energy used by the sector, to help retain competitiveness.
“Removing the excise duty on LP gas will definitely help us and the government’s quick response to our concerns is greatly appreciated. But the government also needs to consider providing other types of energy, like electricity and diesel, also at international market rates. If the government can give energy at international rates we will not need special concessions,” said the Chairman of Dankotuwa Porcelain and the former President of the Sri Lanka Ceramics Council, Sunil Wijesinha.
The ceramic sector, which is highly energy intensive, uses both oil and electricity to operate. Therefore, cutting energy costs is seen as a primary requirement to remain competitive during the current global downturn.
“Diesel is still taxed, so we don’t get it at international market rates and electricity charges in Sri Lanka are also very high. Not getting energy at international market rates is a problem because we sell to the international market and they compare our prices with prices of other countries. Buyers expect us to reduce our prices because the world over oil prices have reduced,” said Mr Wijesinha.
However, the ceramic sector said the government’s speedy removal of the new tax on LP gas would help retain competitiveness and jobs.
The Sri Lanka Ceramics Council in a statement this week welcomed the government decision to remove the excise duty on LPG with effect from March 26. The Council also said it notes with great appreciation the speed with which the decision has been implemented by officials of the Ministry of Finance.
“Investors too have commented that this clearly indicates the government’s responsiveness to factors affecting the competitiveness of particularly export industries. This move will also help the endeavours of our member companies to focus on one of their main objectives during this period of crisis; that of making efforts wherever possible to retain its current labour force,” the statement added. |
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