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Sri Lanka Reduces Domestic Tax on Pakistani Kinnows


Sri Lanka Reduces Domestic Tax on Pakistani Kinnows
In a positive development, the Government of Sri Lanka has reversed its decision to increase CESS (Domestic Tax) on imported Mandarins (Kinnows) from Pakistan.
Pakistan has been a leading and steady supplier of quality mandarins to the Sri Lankan market in recent years. Last month, Sri Lanka had imposed a sudden increase in CESS on imported Mandarins from 30 LKR [Sri Lankan Rupee] per kg to LKR 160 per kg, making Kinnows exports from Pakistan almost four times costlier in the Sri Lankan market than before.
Although the tax was imposed on all imported Kinnows/Mandarins, the move particularly affected Pakistan as Kinnow is a concessional item under the Pakistan-Sri Lanka Free Trade Agreement (PSFTA). ....

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