Press briefing of Cabinet Decision taken on 2019-10-15

Rationalization of Para-Tariffs

- The imposition of taxes inclusive of the Special Commodity Levy (SCL) the Ports and Airports Development Levy (PAL) and the Commodity Exports Support Scheme Levy (CESS Levy) which comes under para‑tariffs imposed in order to increase the Government annual revenue, to protect the local products from the competitiveness of importation, results in the increase in cost of living and reduce economic competitiveness causing a reduction in their productivity and efficiency. Such taxes are considered a disadvantage to international trade and really a draw back to divert towards the sectors which have a better economic viability. Accordingly, the proposal made by the Minister of Finance to implement a five year strategic plan (2020‑2024), in phases, while also ensuring that the products and industries that really need protection are safe guarded, was approved by the Cabinet. The protective measures such as anti‑dumping and countervailing duties imposed in order to prevent the in flow of goods at prices less than their costs of production will safeguard the domestic industries.