• ‘More transparent’, ‘effective’ tax to be proposed from 2025: Siyambalapitiya 
• Expects to implement a seasonal tax

Sri Lanka is expected to replace the Special Commodity Levy with a Seasonal tax from 2025 onwards to protect the farmers and the consumers, State Minister of Finance Ranjith Siyambalapitiya said.

Speaking at Parliament yesterday (22), he said that the cabinet has approved a proposal to replace the Special Commodity Levy with a more transparent and effective tax from 2025 onwards.

Accordingly, he said that the Government expects to implement a seasonal tax, which is already implemented in many countries, to protect the farmers.

He said that the said tax would be implemented on products produced domestically to give proper earnings to the farmers while keeping the prices high.

Also, he said that when prices rise during festive seasons, the tax can be brought down to protect consumers as well.

Sri Lanka saw vegetable prices skyrocket at the end of last and the beginning of this year due to supply chain issues with adverse weather conditions, where the price of 1kg of carrots went beyond Rs. 2500, but with excessive planting the vegetable prices went down significantly during the April festive season, where the price of 1 kg carrot stood at Rs. 280.

The European Union has proposed a windfall tax on agrifood products where the tax would target excessive profits made by food companies during certain periods, with the aim of supporting farmers and balancing the food supply chain.