Taxes imposed on imported rice have been reduced with immediate effect.
The Rs.80 tax that was imposed on Imported Rice will be reduced to Rs.15 with effect from midnight today.
The Ministry of Finance said the measure was taken to prevent the general public from facing difficulties due to the increase in prices of rice.
Accordingly, the government has decided to completely remove the 50 rupee import levy, the Value Added Tax of 15 per cent, the 7.5 per cent customs duty and the 2 per cent Nation Building Tax.
The Finance Ministry said the government will follow a special commodity levy of 15 rupees in place of the previous tax imposed on imported rice.
The concession will apply for the importation of Samba, Naadu and Red rice. The tax concession will not apply for the importation of Basmati rice.