Press briefing of Cabinet Decision taken on 2023-02-27

Exemption of the purchase of paddy, production and sale of rice from the Social Security Levy

- Approval ofthe Cabinet has been granted to implement a programme toprovide rice to the low income earners free of charge by purchasing Nadu paddy by the Governmentat Rs 100/-per kg in view of giving a reasonable price to the paddy farmer. The rice producers has pointed out that an additional cost has to be incurred for the water, electricity, storage and transportationetc. until one kg of rice is produced and delivered to the consumer in the process of rice production in addition to the amount of money paid to the farmer for 01kg of paddy and apart from that approximatelyRs.6.00/7.00 for 01kg of rice has to be spent as social security contribution levy. They have further pointed out that if any relief can be given to reduce the said cost, there is a possibility of giving a higher price to the farmers. Taking into consideration the said matters, the proposal made by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to amend the Social Security Contribution Levy Act, No.25 of 2022 to exempt the purchase of paddy, production and sale of rice from the social security levy so as to provide farmers with a price higher than Rs.100/- per kg of Nadu paddy by maintaining the current price of paddy in the market as it is, was approved by the Cabinet.