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VAT to be imposed on imported coconut oil and palm oil
Nov 07, 202505:23 PM
The government has proposed to remove the Special Commodity Levy on imported coconut oil and palm oil and implement the general tax structure including Value Added Tax.
Accordingly, the new tax system on imported coconut oil and palm oil will be implemented from April 2026, President Anura Kumara Dissanayake said while delivering the 2026 Budget.
At present, locally produced coconut oil and palm oil are subjected to Value Added Tax and Social Security Contribution Levy, while imported coconut oil and palm oil are subjected to Special Commodity Levy at Rs. 150 per kilogram and Rs. 275 per kilogram, respectively.
The new tax proposal has been proposed to ensure a level playing field, the President stated.
