Sri Lanka abolishes wheat flour import licensing, hikes tax: Minister

Sri Lanka has ended a wheat import duopoly by ending import licenses from August 29, allowed flour imports again at a slightly reduced tax, State Minister for Finance Ranjith Siyambalapitiya said.

The controversial import licenses recreated a duopoly in wheat imports by giving a protected market to two wheat milling companies, opposition legislators charged.

The parliament’s Committee on Public Finance also raised the matter, saying milling grain in Sri Lanka led to large tax losses, high profits for millers and high prices for consumers.

Minister Siymabalapitiya said the licensing scheme has been abolished with effect from August 29 midnight.

Wheat grain imported by the two milling companies be taxed at 6 rupees a kilogram instead of the earlier 3 rupees a kilo.

Import duty on wheat flour has been raise to 27 rupees a kilogram or 20 percent. Wheat flour also has a 10 percent Port and Airport Levy and 2.5 percent social contribution levy.

Wheat flour from Pakistan can be imported minus the import duty only.

Opposition legislators have charged that total taxes were around 35 percent at current market prices. Wheat flour is sold around 210 rupees kilogram.

Tags: licenses, milling grain, wheat, flour, imports, Sri Lanka, wheat flour, tax