The Committee on Public Finance (COPF) has approved measures to reduce the existing CESS tax on cement, resulting in a price decrease of approximately Rs. 100 per bag. The price reduction is expected to bring relief to consumers, with a decrease of Rs. 1 per kilogram of cement.
The decision was made during a meeting held on 8 January, chaired by MP Dr. Harsha de Silva, where the COPF reviewed several Orders and Notifications related to taxation and welfare.
In addition to the cement tax reduction, the Committee has instructed officials from the Ministry of Finance to ensure that the revenue generated from the CESS tax is directly transferred to the relevant financial institutions. This action aligns with the goals of the Sri Lanka Export Development Act, which aims to bolster export development initiatives.
Another significant approval came for a tax of Rs. 1,000 per cubic meter on the export of rock boulders, introduced during the construction of the Hambantota Port. The tax will apply to one million metric tons of rock boulders, a move aimed at regulating exports in this sector.
On the welfare front, the COPF also approved an increase in the benefits provided to beneficiaries of the Aswesuma program, aimed at alleviating poverty. The allowances for households under extreme poverty will be raised from Rs. 15,000 to Rs. 17,500, while other beneficiaries will see their allowances increase from Rs. 8,500 to Rs. 10,000, and from Rs. 2,500 to Rs. 5,000. The Rs. 5,000 allowance for certain households will remain unchanged.
Furthermore, the Committee did not approve the Notification related to the Western Terminal of Colombo Port under the Strategic Development Projects Act, although the Order for a garment factory in Batticaloa will be reconsidered at a later date. Six Orders under the Special Commodity Levy Act, concerning tax reductions and validity extensions, were also discussed.
The meeting was attended by COPF members, including MPs Ravi Karunanayake, Harshana Rajakaruna, Shanakiyan Rasamanickam, Dr. Kaushalya Ariyarathne, Nimal Palihena, Wijesiri Basnayake, Thilina Samarakoon, and Lakmali Hemachandra.
