The Ministry of Finance has dismissed reports of new taxes being imposed on imported goods, clarifying that the government has only extended existing special commodity tax rates rather than introducing new levies. In an official statement, the ministry addressed the confusion surrounding a recent gazette notification, explaining that the extension is a continuation of the existing tax policy set in October 2023.
The original tax rates, implemented under Gazette Notification No. 2353/77, were due to expire on October 13, 2024. The new Gazette Notification No. 2406/02, issued on October 14, 2024, extends these rates until December 31, 2024, ensuring no disruption to the current taxation regime. The extension was made under the Special Commodity Tax Act No. 48 of 2007, a standard legal procedure for renewing tax rates.
The ministry noted that the decision to keep the tax rates unchanged—such as the 25% levy on imported lentils—aims to support the local economy by protecting domestic fishing, fruit cultivation, and other agricultural industries. Additionally, it addresses concerns about managing foreign exchange reserves in a challenging economic environment.
The extension allows the government time to conduct a thorough review of these taxes while maintaining stability for businesses and consumers. The ministry labeled recent media claims as “false propaganda” and assured the public that no new taxes have been implemented, emphasizing that the current tax rates are being continued for administrative purposes until the end of 2024.
