The government has taken steps to reduce the Ports and Airports Development Levy (PAL) imposed on several items imported under the Sri Lanka-Singapore Free Trade Agreement (FTA).
The PAL which prevailed at 10% has now been reduced to 6% with effect from March 29, the Ministry of Finance said.
Thus, the relevant levy imposed on several types of cement, a variety of fruits including apples and infants’ foods other than milk foods approved by the Director General of Health Services, and multiple other items imported under the Sri Lanka-Singapore FTA have been slashed.
Steps have also been taken to revise the taxes levied on medicines, surgical instruments, electrical equipment, bathroom equipment, polythene and plastic, aluminum and wooden items imported under the relevant FTA.
However, the rate of the PAL, specified in the order published in the Extraordinary Gazette Notifications No. 2312/67 dated December 31, 2022, No. 2326/2 dated April 03, 2023, No. 2345/50 dated September 21, 2023 and No. 2364/37 dated December 31. 2023 shall be continued to apply without any change on importation of respective goods other than the importation of such goods specified in the Sri Lanka-Sigapore Free Trade Agreement.
