State Minister Ranjit Siyambalapitiya announced plans to replace the existing 'special commodity levy' with a new protectionist tax effective January 01, aimed at bolstering profits for local farmers and maintaining stable food prices.
Minister Siyambalapitiya emphasized that the move would eliminate the special commodity levy, which was initially implemented to safeguard domestic farmers and producers. Instead, the new tax structure will include import duties and seasonal levies, designed to provide enhanced support to local farmers while ensuring a fair market for consumers.
The decision to transition from the special commodity levy follows criticism of its implementation, including its sudden imposition during late hours and allegations of manipulation benefiting select importers.
Former Trade Minister Bandula Gunawardana originally advocated for the special commodity levy as a response to global commodity market fluctuations. However, its effectiveness was questioned amid concerns over transparency and equity.
Minister Siyambalapitiya outlined that the new protectionist tax will be tailored to align with specific seasons when local produce enters the market. This targeted approach aims to shield farmers from external competition during crucial periods of crop cultivation and harvest.
The introduction of the new tax signals the government's commitment to supporting domestic agriculture and ensuring food security for Sri Lankan consumers. By aligning economic policies with the needs of local farmers, authorities aim to foster a more resilient and sustainable agricultural sector.
