• Govt. considers reversing planned removal of SCL set for Jan. ’25
• Discussions still in preliminary stages: Officials
• Govt. committed to reviewing all previous policy announcements, decisions
• Cabinet approved suspension of levy to support consumers, local manufacturers

The anticipated removal of the Special Commodity Levy (SCL) from 1 January 2025 appears to be in jeopardy as the new Government seeks to review the decision made by the previous Government.

Speaking to The Sunday Morning Business, Department of Fiscal Policy Director General Kapila Senanayake stated that a decision was yet to be made on whether the new Government intended to go through with the previous Government’s decision to remove the SCL from 1 January 2025.

“We have to have a thorough discussion with regard to this issue,” he stated. 

Responding to a question by The Sunday Morning Business on whether the Government would seek an alternate approach, he stated that it was too early to comment. 

Similar sentiments were expressed to The Sunday Morning Business by Ministry of Trade, Commerce, Food Security, Cooperative Development, Industry, and Entrepreneurship Development Secretary M.M. Nayeemudeen, who stated that the present Government intended to review and reconsider all announcements and decisions made by the previous Government.

“The present Government is reviewing all those pledges and policy concerns. Therefore, it is too early to comment on the matter,” he stated.

In March, the Cabinet of Ministers approved a proposal submitted to suspend the SCL Act from 1 January 2025 in a bid to safeguard both consumers and local manufacturers.

Accordingly, the Cabinet gave the nod to instruct the Legal Draftsman to prepare a draft bill to suspend the SCL Act No.48 of 2007 as the Government had identified the need to suspend the legislation due to various challenges encountered during its implementation.

Under the act, a tax is imposed on a total of 64 commodities categorised under 210 Harmonised System (HS) codes to facilitate the importation of these goods.

Speaking in Parliament on 22 May, former State Minister of Finance Ranjith Siyambalapitiya revealed that the Government intended to replace the SCL with a seasonal tax.