The government has decided to reduce duties on imported powdered milk in a bid to maintaining price levels as inflation pressures continue to plague the global economy. A senior Treasury official speaking to The Island Financial Review said taxes on imported milk powder would be slashed by Rs. 22. Taxes amounting to Rs. 50 a kilogram will now be brought down to Rs. 28 for a kilo of imported milk powder. He said the import duty component would be removed while the 2 percent Nation Building Tax and 5 percent Port and Aviation Tax would remain. "Last December, a kilo of milk powder was priced at Rs. 384 and effective tax was around Rs. 50 a kilo. The government has decided to waive the import duty which in effect would be a reduction of Rs. 22. But this would depend on the price. We expect milk powder prices to reach Rs. 400 and this is why this measure was taken to keep prices steady," the Treasury official said.
The previous day, the government said it would reduce the tax on petrol by Rs. 10 a lire to Rs. 5 in a bid to contain losses incurred by Lanka Indian Oil Company and Ceylon Petroleum Corporation.
This move is expected to ease any pressure on the market price of heavily subsidises diesel which is commonly used for transportation purposes and directly impacting prices of food items.
Inflation reached 5.9 percent in 2010 and the Central Bank said it would contain it at single digit levels this year. However, the recent floods are expected to put some temporary pressure on prices but the biggest concern is the trend in rising global commodity prices.
source - www.island.lk
No comments:
Post a Comment