Financial Times

Call to reduce duties on squatting pans
Unbelievable but true - it costs the same to the rich or the poor to relieve oneself! Nawaz Rajabdeen, President of Sri Lanka's Federation of Chambers of Commerce and Industry (FCCI), recently wrote to Finance Minister Sarath Amunugama urging him to reduce import duty on squatting pans - used mostly by the poor - to 5 % and the VAT to 10 % particularly in view of the tsunami crisis.

He said squatting pans used mostly in rural areas and the plantation sector and luxury bathroom fittings have the same duty structure of 28 % + 20 % cess + 18 %t VAT + 5 % other charges. "The current export price of squatting pans varies from $2.50 to $5, white colour. The landed cost of the pan will be 85 % of the CIF value which includes duty, cess, VAT and customs charges. For example a squatting pan worth Rs 250 would cost around Rs 485," the letter said.

Rajabdeen said that more than one million people have been displaced by the tsunami and are living in tents and temporary shed without clean toilets. "The entire area will be polluted if we don't provide clean sanitation (facilities)."

He said squatting pans made out of ceremic are not manufactured in Sri Lanka commercially. A few cottage industries produce the pans out of cement and fiberglass. Regular dealers don't import due to high duty costs.

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