The customs import duty on imported milk powder has been increased by Rs 25 per kilogram with effect from yesterday (June 2), the Ministry of Finance and Planning said.

Accordingly the previous import duty of Rs 57 has been increased to Rs 82 per kilogram.

The government decided to lower its duty waiver provided per kilogram to powdered milk food importers into Sri Lanka with immediate effect.

This duty waiver had been provided by the government due to the frequent increases of powdered milk food in the world market. Though Rs. 125.00 should be charged as duty on every kilogram of powdered milk, only Rs. 57.00 had been charged as Customs levy. That is, Rs. 68 had been provided as a tax concession to the importer.

However, since powdered milk prices are fast decreasing in the world market the Finance Ministry has taken steps to lower this duty waiver to Rs. 43.00. That means, the Rs. 57.00 per kilogram levied on the importers has now been increased to Rs. 82.00

Though this duty waiver has been lowered due to the fall in powdered milk prices in the world market, the importers could still supply powdered milk at the existing prices or lower than them, says the Finance Ministry.

The ministry also points out that the prices of powdered milk would not increase due to this duty waiver.

While the price of a metric ton of powdered milk which had earlier been around USD 5,000 has by now dropped to around USD 3,800 the parliamentary opposition in Sri Lanka has continued to stress that this concession be passed on to the consumers.