ANNOUNCEMENT 23 Jan 2013

In January 2013, the government of Sri Lanka announced a change in export taxation.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 23 Jan 2013 | Removal date: open ended
Still in force

Export tax

 
On 23 January 2013, Sri Lanka increased the export duties on bulk tea (HS Codes0902.40.91, 0902.40.92, 0902.40.93 and 0902.40.99)from Rs. 4 per kg to Rs. 10 per kg. (USD 0.08 per kg)
 
In particular cases, the duty can exceed the Rs. 10 per kg; namely when the benchmark price (Colombo Tea Auction Average Price) exceeds Rs. 200 per kg. (USD 1.6 per kg).
 
On 1 March 2013, Sri Lanka reduced the benchmark price equivalent to 2.5 percent; hence, the benchmark price must exceed Rs. 400 per kg (USD 3.2 per kg) to trigger an additional increase in the duty.
 
Overview of applied export duty after 1 March 2013:
 
case a) If the benchmark price is lower than Rs. 400 per kg, a duty of Rs.10 per kg will apply.
 
case b) If the benchmark price is higher than Rs. 400 per kg, a duty equivalent to 0.025 * benchmark price will apply.

AFFECTED SECTORS

 

AFFECTED PRODUCTS