Date: 2015-11-04 Answered

0091/2015: PRICE REDUCTION OF CEMENT: LOSS OF REVENUE

91/’15

Hon. Vasudeva Nanayakkara,— To ask the Minister of Industry and Commerce,—

(a) Will he state—

(i) whether the removal of the tax of Rs. 90.00 from the selling price of cement by the last interim budget was done, not as a measure to bring down the prices of cement; and

(ii) the tax revenue per month lost to the government as a result of this?

(b) Will he also state—

(i) whether the retail price of cement was fixed at Rs. 840.00 having published the relevant price reduction in the Gazette of 20^th February 2015;

(ii) whether cement is sold in the country at that price since then; and

(iii) if not, isn’t it an (grave) error that the government lost its income while the consumers too lost the anticipated relief?

(i) whether steps will be taken to effect this price reduction as promised by the interim budget; and

(ii) if so, the date it will be effective from?

(d) If not, why?

Asked Date

2015-11-04

Asked by

Hon. Vasudeva Nanayakkara, M.P.

Ministry

Industry and Commerce

Legislature

Eighth Parliament of the D.S.R. of Sri Lanka

Session

First Session

Question History

Answer

(a) (i) The Customs Duty on import, that was 7.5 per cent, has been removed by the last Interim Budget in order to reduce the selling price at the local market.

(ii) There is a loss of around Rs. 100 million per month from the tax levy because of this removal of Customs Duty.

(iii) More cement is imported to this country under the Free Trade Agreements established between India and Pakistan. Cement imported under Free Trade Agreements is exempted from Customs Duty. Therefore, the removal of this Customs Duty has created opportunities to import cement from countries like Indonesia and Malaysia at competitive prices.

(b) (i) Yes.

(ii) No.

The Extraordinary Gazette Notification No. 1902/47 was published on 20^th February, 2015 declaring the price of a bag of cement as Rs. 840.00. Yet by the Extraordinary Gazette Notification of No. 1908/9 dated 31^st March, 2015, maximum retail price of a 50kg bag of cement was declared again as Rs. 870.00. Cement is sold island-wide at that price since that day.

(iii) Not relevant

Implementation of the price at Rs. 870.00 in the market island-wide as declared by the Extraordinary Gazette Notification dated 31^st March, 2015 is monitored by the Consumer Affairs Authority.

(ii) Since 31^st March, 2015.

(d) Not relevant

Answered Date

2015-12-04

Answered by

Hon. Rishad Bathiudeen, M.P.