The Ministry of Finance, Planning, and Economic Development has announced the continuation of the Special Commodity Tax on 63 key imported items, effective from January 1, 2025. This extension, formalized through Gazette Notification No. 2417/20 dated December 31, 2024, ensures that the current tax rates will remain unchanged under the provisions of the Special Commodity Tax Act No. 48 of 2007.
The extension seeks to maintain a simplified and transparent tax structure while achieving multiple objectives, including price stability for consumers, protection of domestic industries, and support for local agricultural and fisheries sectors. The 63 items covered under the tax, corresponding to 210 customs codes, include essential goods such as lentils, sugar, potatoes, onions, garlic, vegetable oils (including coconut oil), canned fish, and dried chilies.
The government has emphasized that this measure is vital to shielding consumers from potential price hikes while simultaneously promoting local production. Essential agricultural products such as rice, urad dal, green beans, maize, kurakkan, turmeric, and fruits, along with fisheries products like fresh fish and dried fish, benefit from the protective framework established by these tax rates.
The decision is also aimed at addressing broader economic concerns. By stabilizing the tax rates on imports, the government seeks to reduce undue pressure on domestic producers who face competition from foreign imports. Furthermore, the unchanged rates are intended to encourage sustainable practices in agriculture and fisheries, ensuring that local industries remain viable in the face of global market fluctuations.
This extension reflects the government’s broader commitment to fostering economic resilience while balancing consumer needs with the preservation of domestic industries. As part of its fiscal strategy, the Ministry of Finance has reiterated its dedication to reviewing policies periodically to ensure their alignment with national development objectives.
