The Ministry of Finance has released an official statement addressing misinformation circulating in the media regarding the imposition of ...
The Ministry of Finance has released an official statement addressing misinformation circulating in the media regarding the imposition of new special commodity taxes on five types of goods. Contrary to these false reports, the government has not introduced any new taxes on these items.
The statement clarifies that the current taxation policies remain unchanged. The Ministry extended the validity of the existing special commodity taxes through Gazette No. 2406/02, dated October 14, 2024, to remain effective until December 31, 2024. This extension follows the expiration of the one-year period outlined in Gazette Notification No. 2353/77, which was issued on October 14, 2023, and concluded on October 13, 2024.
The Ministry emphasized that no new taxes were added, and existing tax benefits were simply extended. This includes the continuation of the subsidized tax of 25 cents on imported lentils, which is designed to ensure affordability for consumers. Furthermore, the government has extended tax benefits for four other commodities, considering the need to protect local industries—particularly the fishing and fruit cultivation sectors—and to manage foreign exchange reserves effectively.
While Gazette notices under this Act are typically issued for a duration of one year, the Ministry has decided to maintain the current tax structure until December 31, 2024. This decision allows for a more formal study of these taxes to be conducted before any adjustments are made in the future.
The Ministry of Finance assures the public that these measures are intended to provide continuity and stability, particularly in support of local industries, while ensuring that foreign exchange is managed prudently. The government remains committed to re-evaluating the taxation policies by the end of 2024 based on the findings of the ongoing review.
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