Minister of State for Finance Dr. Ranjith Siyambalapitiya says that there is no possibility of an increase in the price of essential goods due to the cess tax amendment.
The minister points out that the customs duty or the excise duty is levied on essential goods and they will be implemented without any amendment.
Minister Siyambalapitiya points out that no item in the list of 120 essential items is subject to cess tax.
“There are two objectives of the cess tax introduced by the Export Development Act No. 40 of 1979. One is to levy a tax on imported goods with the aim of protecting the goods that are capable of being produced in this country. Another is levying a tax to discourage non-value-added exports. The Minister mentions that the income from this tax will be directed towards the welfare of the relevant industries.
Cess tax is levied on the percentage of the value of a product or a fixed price per unit, whichever is higher.
But due to the 100% depreciation of the rupee, the minister pointed out that the amount charged based on the quantity of a product is decided to be matched from this year’s budget.
