Sri Lanka lifts development levy on pharmaceutical raw materials

COLOMBO (News1st): Sri Lanka has lifted a levy imposed on raw materials and packing materials imported by pharmaceutical manufacturers from this week. The Ports and Airports Development Levy, which was five percent of the cost of imported pharmaceutical raw materials, will not be in effect from May 26, finance minister Mahinda Rajapaksa said in a gazette. The revised regulation would mean that imports made by pharmaceutical manufacturers on the recommendation of the health secretary will not be applicable to the tax. The gazette had revoked a previous regulation to impose the levy on these products, which had come into effect from December 05, 2019. Last year, the finance ministry had imposed the Ports and Airport Development levy on more than 200 products, with tax rates standing at either five or 7.5 percent. Nearly 100 products including weapons and vehicles had, however, been exempted from the tax.