ANNOUNCEMENT 21 Nov 2011

In November 2011, the government of Sri Lanka announced .

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 2 neutral
  • 0 liberalising

SOURCE



Budget speech
http://www.treasury.gov.lk/depts/fpd/budgetspeech/2012/bgtspeech2012-eng.pdf


Inception date: 21 Nov 2011 | Removal date: 20 Dec 2012

Import tariff

On 21 November 2011, the Sri Lankan Minister of Finance and Planning presented the budget for 2012 in the Parliament.
The following changes arerelevant to international commerce:

  • Income Tax concessions and additional tax deferment provided for Strategic Import Replacement Enterprises who invest into locally produce cement, steel, pharmaceuticals, fabric or milk powder. Furthermore, these benefits are extended to enterprises that export more than 75% of their output.
  • Tax exemption on royalties received from abroad.
  • Tax concessions on income from exported tea.
  • Tax exemption on yarn production to facilitate local handloom/fabric manufacturing.
  • Tax introduction on imports of fabric for domestic consumption.
  • Value Added. Tax (VAT) exemptions on imports of 9 categories of products.
  • VAT exemption on 5 categories of locally manufactured products.
  • VAT exemption on imports of 17 categories of products.
  • VAT exemption for raw materials used for manufacture of spectacles and spectacle frames in order to protect local industries.
  • Exemption of nation building tax on the imports of 13 products.
  • Exemption of nation building tax on sales of any goods to exporters.
  • Cess on imports of 8 categories of products used as raw materials by local manufacturers has been removed/reduced.
  • Cess on imports of 20 categories of products has been reduced/removed.
  • Cess has been increased/imposed on exports of 14 items.
  • Customs duty reduction/exemption on 27 categories of products.
  • Customs duty increase/introduction on 2 categories of products.
  • Exemption from Ports and Airports Development Levy on imports of 8 categories of products.
  • A unified Special Commodity Levy introduced for 8 items in lieu of all the applicable taxes.
  • Duty exemption on any imports by Sri Lankan Air Lines Limited, Air Lanka Catering Services Ltd., and Mihin Lanka Pvt. Ltd.

 

AFFECTED SECTORS

 
013 016 019 212 214 222 232 239 263 264 265 266 267 268 279 281 282 295 311 347 352 353 354 355 361 362 369 371 372 374 384 385 387 412 421 429 431 432 439 445 448 449 452 461 462 464 465 471 473 481 482 491 493 496 499
(+ 40 more)

AFFECTED PRODUCTS

 
030349 030389 030559 030571 040210 040221 080410 080510 080520 080610 080620 090220 090240 090921 090931 091030 091099 110814 190110 190190 252310 252329 300510 300610 330499 330510 330590 330741 350691 350699 390210 390230 390319 390390 390410 390421 390422 390720 390740 390750 390760 390791 392620 392690 400599 400700 401110 401120 401140 401150 440729 500720 500790 510710 511219 520100 520511 520512 520514 520521 520522 520534 520542 520544 520611 520811 520819 520821 520829 520831 520832 520839 520841 520851 520859 520911 520912 520919 520921 520929 520931 520932 520939 520942 520951 520959 521019 521029 521039 521142 521159 530919 530921 530929 540110 540220 540231 540233 540239 540244 540245 540249 540261 540262 540490 540710 540761 540769 540810 550190 550390 550410 550912 550921 550922 550951 550953 550999 551011 551211 551219 551299 551311 551319 551321 551329 551339 551349 551419 551511 551512 551519 580121 580122 580410 580421 580429 580430 580620 580631 580632 580639 590210 590290 590310 590320 590390 600122 600191 600192 600410 600490 600590 600621 600622 600624 600631 600632 600634 600642 600690 611790 620342 620349 620630 621149 621290 640590 691090 691110 701328 730511 730810 730820 730840 730890 732410 821210 830810 830820 830890 830910 830990 840810 840820 841370 841821 841850 841891 841899 843880 847130 847141 847149 847150 847160 847170 847330 847710 847720 847780 847982 847989 848079 848180 850140 850211 850212 850213 850231 850239 850240 850300 850423 850432 850440 850490 850610 850680 850710 850760 851829 853229 853400 853620 853649 853650 853669 853690 853710 853720 854110 854140 854231 854239 854290 854620 870210 870421 870422 870423 870431 871410 871491 871492 871493 871494 871495 871496 871499 880240 890790 902110 902139 902190 902820 902830 940510 940540 940600 950300 950629 950691
(+ 253 more)
Inception date: 21 Nov 2011 | Removal date: 20 Dec 2012

Tax or social insurance relief

On 21 November 2011, the Sri Lankan Minister of Finance and Planning presented the budget for 2012 in the Parliament.
The following changes arerelevant to international commerce:

  • Income Tax concessions and additional tax deferment provided for Strategic Import Replacement Enterprises who invest into locally produce cement, steel, pharmaceuticals, fabric or milk powder. Furthermore, these benefits are extended to enterprises that export more than 75% of their output.
  • Tax exemption on royalties received from abroad.
  • Tax concessions on income from exported tea.
  • Tax exemption on yarn production to facilitate local handloom/fabric manufacturing.
  • Tax introduction on imports of fabric for domestic consumption.
  • Value Added. Tax (VAT) exemptions on imports of 9 categories of products.
  • VAT exemption on 5 categories of locally manufactured products.
  • VAT exemption on imports of 17 categories of products.
  • VAT exemption for raw materials used for manufacture of spectacles and spectacle frames in order to protect local industries.
  • Exemption of nation building tax on the imports of 13 products.
  • Exemption of nation building tax on sales of any goods to exporters.
  • Cess on imports of 8 categories of products used as raw materials by local manufacturers has been removed/reduced.
  • Cess on imports of 20 categories of products has been reduced/removed.
  • Cess has been increased/imposed on exports of 14 items.
  • Customs duty reduction/exemption on 27 categories of products.
  • Customs duty increase/introduction on 2 categories of products.
  • Exemption from Ports and Airports Development Levy on imports of 8 categories of products.
  • A unified Special Commodity Levy introduced for 8 items in lieu of all the applicable taxes.
  • Duty exemption on any imports by Sri Lankan Air Lines Limited, Air Lanka Catering Services Ltd., and Mihin Lanka Pvt. Ltd.

 

 
013 016 019 212 214 222 232 239 263 264 265 266 267 268 279 281 282 295 311 347 352 353 354 355 361 362 369 371 372 374 384 385 387 412 421 429 431 432 439 445 448 449 452 461 462 464 465 471 473 481 482 491 493 496 499
(+ 40 more)
 
030349 030389 030559 030571 040210 040221 080410 080510 080520 080610 080620 090220 090240 090921 090931 091030 091099 110814 190110 190190 252310 252329 300510 300610 330499 330510 330590 330741 350691 350699 390210 390230 390319 390390 390410 390421 390422 390720 390740 390750 390760 390791 392620 392690 400599 400700 401110 401120 401140 401150 440729 500720 500790 510710 511219 520100 520511 520512 520514 520521 520522 520534 520542 520544 520611 520811 520819 520821 520829 520831 520832 520839 520841 520851 520859 520911 520912 520919 520921 520929 520931 520932 520939 520942 520951 520959 521019 521029 521039 521142 521159 530919 530921 530929 540110 540220 540231 540233 540239 540244 540245 540249 540261 540262 540490 540710 540761 540769 540810 550190 550390 550410 550912 550921 550922 550951 550953 550999 551011 551211 551219 551299 551311 551319 551321 551329 551339 551349 551419 551511 551512 551519 580121 580122 580410 580421 580429 580430 580620 580631 580632 580639 590210 590290 590310 590320 590390 600122 600191 600192 600410 600490 600590 600621 600622 600624 600631 600632 600634 600642 600690 611790 620342 620349 620630 621149 621290 640590 691090 691110 701328 730511 730810 730820 730840 730890 732410 821210 830810 830820 830890 830910 830990 840810 840820 841370 841821 841850 841891 841899 843880 847130 847141 847149 847150 847160 847170 847330 847710 847720 847780 847982 847989 848079 848180 850140 850211 850212 850213 850231 850239 850240 850300 850423 850432 850440 850490 850610 850680 850710 850760 851829 853229 853400 853620 853649 853650 853669 853690 853710 853720 854110 854140 854231 854239 854290 854620 870210 870421 870422 870423 870431 871410 871491 871492 871493 871494 871495 871496 871499 880240 890790 902110 902139 902190 902820 902830 940510 940540 940600 950300 950629 950691
(+ 253 more)