Prices of commodities to go sky high with the introduction of new Cess tax

The government has introduced a revised Cess tax on imports in addition to normal import duty on 2534 items including some essential commodities which is expected to lead to an increase in prices of key commodities.

Accordingly the Cess on imported commodities per kilo and unit of other items has been fixed as 5,15,30,35, 45 and 50 per cent from the imported price of the 2534 items which is effective from January 1, 2021.However under the Special Commodity Levy Act this Cess will not be applicable for 26 commodities including sugar, palm oil, coconut oil, canned fish, Dhal, and Big Onions

With this increase in Cess the selling price of the items will increase by between 20 per cent to 60 per cent, Colombo market traders said.    
This move has been made immediately as the Budget 2021 has not indicated revenue measures in the budget speech presented by Finance Minister and Prime Minister Mahinda Rajapaksa in parliament recently.
The relevant regulations and directives have been sent to the government printer to publish in a gazette notification by the Director General of Trade and Investment policy Department, Treasury sources revealed.
.  (BS)