Finance Ministry clarification on duty concessions

The Ministry of Finance and Planning, yesterday said news items published in some sections of the print media, that duty concessions will not be granted for donations to welfare camps were misleading. The Ministry press release said:

"Items which are produced or manufactured locally, such as rice, biscuits, bottled drinking water, soap, tea, tooth brushes etc. will not be considered for duty concessions in view of the adverse impact on local manufacturers. The reason for taking such a decision was that after the tsunami in December 2004, local producers were adversely affected due to the influx of large quantities of donations of imported rice, biscuit etc. on duty free basis. Large quantities of imported bottled water incurred additional transport costs in excess of the value of the items and there was no need to import water. The disposal of large stocks of used clothes was another difficulty faced by the Government Agents. Therefore in order to avoid the repetition of such a situation it was decided not to give any duty concessions for items which are locally produced. The Ministry of Finance and Planning reiterates that on the recommendation of the Ministry of Nation Building and Estate Infrastructure Development, the urgently needed essential requirements will continue to be released on duty free basis. Read more ...