Press briefing of Cabinet Decision taken on 2018-07-10

Introduction of a Fixed Rate of CESS on Bulk Tea Exports

- CESS calculation on Bulk Tea is being carried out at present and accordingly, the said calculation is computed on a monthly basis, at the rate of Rs.10/- per kg or 2.5% of the Colombo Tea Auction average prices which ever is higher. Presently, CESS paid by the Tea exporters is approximately 20% per kg. of tea and accordingly, the tea exporters have encountered several difficulties such as the difficulty in finalizing the bulk tea prices in advance as the CESS rates is computed on monthly basis and delay in submitting export prices. As such, the proposal made by Hon. Navin Dissanayake, the Minister of Plantation Industries, to introduce a fixed CESS rate of Rs.10/- per kg for bulk tea exports, as a remedial measure for the issue, was approved by the Cabinet.